Edition

IFTA JOURNAL
2017 EDITION
References
Bulkowski, Thomas N. (2008). Encyclopedia of Candlesticks Charts. Hoboken, New
Jersey: John Wiley & Sons, Inc.
Fischer, Robert & Fischer, Jens. (2003). Candlesticks, Fibonacci, and Chart Pattern
Trading Tools: A Synergistic Strategy to Enhance Profits and Reduce Risk.
Hoboken, New Jersey: John Wiley & Sons, Inc.
Lambert, Clive. (2009). Candlesticks Charts: An introduction to using Candlesticks
charts. Hampshire: Harriman House Ltd.
Logan, Tina. (2008). Getting Started in Candlesticks Charting. Hoboken, New
Jersey: John Wiley & Sons, Inc.
Morris, Gregory L. (2006). Candlesticks Charting Explained: Timeless Techniques
for Trading Stocks and Futures, Third Edition. McGraw-Hill.
Nison, Steve. (1994). Beyond Candlesticks: New Japanese Charting Techniques.
John Wiley & Sons, Inc.
Nison, Steve. (2001). Japanese Candlesticks Charting Techniques, Second Edition.
New York: New York Institute of Finance.
Nison, Steve. (2003). The Candlesticks Course Paperback. Hoboken, New Jersey:
John Wiley & Sons, Inc.
Pasternak, Melvin. (2006). 21 Candlesticks Every Trader Should Know. Columbia,
Maryland: Marketplace Books.
Pring, Martin. (2002). Candlesticks Explained. McGraw-Hill.
Rhoads, Russell. (2008). Candlesticks Charting For Dummies. Indianapolis,
Indiana: Wiley Publishing, Inc.
Notes
1
Where Nison (1994, 2001, 2003) and Logan (2008) stressed that Japanese
candlestick patterns do not have target levels based on the same patterns.
2
Within the limits of a researcher’s knowledge, Bulkowski (2008) is the only
reference who explained explicitly two methods for determining target levels
for Japanese candlestick patterns. The first method calculates the height of
a Japanese candlestick pattern, and then adds or subtracts this height from
the level of confirmation filter. In the second method, Bulkowski conducted
separate statistics for all Japanese candlestick patterns to determine
the rate of the achieved target level based on the traditional method (the
pattern’s height). Based on that, Bulkowski multiplied the height of Japanese
candlestick pattern in the pattern’s rate to achieve the target level based on
the traditional method, and then added or subtracted the result from the level
of the confirmation filter. And the method used in this study is characterized
by it taking into account the number of candles that closed between the upper
filter level and the lower filter level, including candles of Japanese candlesticks
patterns. Whenever the number of candles represents the time factor, the
larger the number of candles; whenever the longer time period; and whenever
the expected target level farther, and vice versa, the fewer the number of
candles; whenever the shorter time period; and whenever the expected target
level closer.
3
Financial Times 500 Ranking Report: An annual snapshot of the world’s largest
companies to show how corporate fortunes have changed in the past year,
highlighting relative performance of countries and sectors. The companies
are ranked by market capitalization and classified in six sections: Global,
United States, Europe, United Kingdom, Japan, Emerging Markets. When the
market capitalization of the company is larger, the ranking will be higher.
(Source: The Financial Times website: http://www.ft.com. Date of visit and
data download: 19 July 2014.)
4
As referred to this by Pring (2002), Fischer & Fischer (2003), Morris (2006), and
Logan (2008).
5
This condition is called rise or decline, rather than uptrend or downtrend, and is
determined by the rise or decline by five successive rising or falling days at
least before the appearance of the Japanese candlestick pattern, consistent
with Pasternak (2006), who explained that the secondary trend lasts from 5
to 15 days, and consistent with Bulkowski (2008), who noted that the trend
in the ideal situation would be from 3 to 7 days. Also, Nison (2001) explained
in his comments on some of technical charts that the rise or decline could be
determined by two or three rising or falling candles at least. In addition to
that, the determination of the rise or decline by five rising or falling days is at
least consistent with charts and examples described in specialized books in
the field of Japanese candlesticks, such as Pring (2002), Morris (2006), Rhoads
(2008), and Lambert (2009).
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