STA Blog

Patricia Elbaz on candlesticks for beginners for IG TV: Charting the Markets with Jeremy Naylor

This week’s guest on Jeremy Naylor’s Charting the Markets show is Patricia Elbaz, independent technical analyst and university lecturer. The programme is an excellent introduction to the basics of candlestick charts: how they are constructed, the importance of the bodies relative to their wicks, what happens when the open and close are at the same level.

Munehisa Homma was a rice merchant from Sakata, Japan who traded in the Dojima Rice market in Osaka during the Tokugawa Shogunate. He’s considered the father of candlestick charting. Around 1710, a futures market emerged for rice, which had previously been exclusively spot traded. Not until the early 1990s and Steve Nison’s ‘Japanese Candlestick Charting Techniques’ book did Westerners learn about the method.

Her charts are lovely and clear, her red and green candles reminding me of the ones the STA team carried while taking part in the JP Morgan fun-run at Battersea Park earlier this month. She then moves on to real live examples where she points out candles just discussed – interestingly honing in on cable’s daily chart.

From single candles, she moves on to two-candle patterns, stressing the fact that the point is to compare their shapes. Explaining how she uses these in conjunction with Western technical analysis, such as moving averages, momentum and RSI, the latter are used as confirmation for the basic candles. She also gives a brief outline of how to choose stop loss levels with her methods.

I urge novices to watch this video. Click here to view.

 

Posted in Finance, Markets, STA news, Technical Analysis, Technical Analysis Courses, Trading, Trending
Tags: , , ,
Disclaimer

The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA. The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use. None of the information on the STA’s blog constitutes investment advice.

Not ready to join? Stay Updated

If you want to learn more about membership and being part of the STA, sign up for our updates so we can keep in touch.

  html
  text

Monthly Meetings

The STA holds 11 monthly meetings in the City of London, including a summer and Christmas party where canapés and refreshments are served.

MORE INFO

Latest Videos

As a service to our members, many of whom are unable to attend all our monthly meetings, we have been making videos of meeting presentations for several years.

MORE INFO

STA Libraries

The STA has an extensive library of classic technical analysis texts. There are over 1000 books in the collection. It is held at the Barbican Library with a smaller...

MORE INFO

Market Technician

Latest research and news

More Info

World Class Tutors

STA Course Lecturers

More Info

Membership

Be part of something special

More Info

Blog

View latest posts

More Info