Candlestick Analysis For Professional Traders

Learn the historical performance of candlestick patterns so you can trade stocks, forex and futures with confidence.
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Instructed by Joe Marwood Business / Finance
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  • Lectures 48
  • Length 2 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 5/2016 English

Course Description

For the first time, a course that reveals the historical performance of all the classic candlestick patterns.

Candlestick charts are the number one way to present financial price data. I love them because they allow me to quickly and easily visualise the market and analyse recent price action before placing a trade.

Whether it’s in a particular stock, a currency pair, or a commodity, once you know how to read candlestick charts you can very quickly gauge strength or weakness in the market of your choice.

Now, candlestick charts have been around for centuries and there are numerous books and courses that detail specific candlestick patterns. Patterns such as the shooting star, the Doji and the Hammer. 

However, most of these books and courses fail to address just how good these patterns really are.

On this course, not only will I teach you all about Japanese candlestick charts and how to find the most popular candlestick patterns, but I will show you the historical performance of 25 of the best patterns.

In other words, I’m going to show you which candlestick patterns are the best and which ones you should pay attention to in your trading. And I'm going to show you which ones you should simply ignore.

I’ve analysed 21 different futures and forex markets, over 100 stocks and I’ve made thousands of historical trades to see which patterns produce the most profitable results. And the results are indeed surprising.

In fact, the results suggest that some patterns are not profitable at all and I present the results clearly for you to see.

However, the results also reveal that one specific candlestick pattern is better than every other candlestick pattern that I tested.

On this course, you’ll learn precisely which candlestick pattern that is.  

You’re also going to learn how to spot the candlestick patterns and how to incorporate them into your own trading and investing. Then, I put what we’ve learnt into action when I build a fully fledged trading system based on the best patterns found.

But that’s not all you're going to get.

Because, when you take the course today, you’ll also receive a number of bonuses. 

Bonus 1: you'll get the A3 candlestick cheat sheet so you can quickly locate candlestick patterns by eye. You can even print this out and stick in on the wall if you want to.

Bonus 2: you’re going to get access to the accompanying eBook and all the tables of results.

Bonus 3: you’re going to receive the formulas that I used to code up each candlestick pattern. If you have the back-testing program Amibroker, you’ll be able to use this code to run an exploration and scan for the latest candlestick signals on your own machine.

So, if you want to learn how the professionals use financial charts and you want to take your candlestick trading to another level, just click take this course now and let’s get started learning about Japanese Candlesticks.

All the best of luck with your own trading and learning.

What are the requirements?

  • An understanding of financial terms such as long/short, stock, future is beneficial.

What am I going to get from this course?

  • Understand how to use Japanese candlestick charts to inform and improve investing and trading decisions.
  • Understand the profitability of individual candlestick patterns. Which candlestick patterns work and which candlestick patterns fail.
  • Trade price action and Japanese candlestick charts with more precision and confidence than before.
  • Know the profit potential and opportunities that exist from combining candlestick price patterns with other indicators.
  • Understand some principles about back-testing and designing a price action, chart based trading strategy
  • Understand a complete trading strategy based solely on Japanese candlestick patterns.
  • Scan for individual candlestick patterns using the Amibroker analysis program.

What is the target audience?

  • Anyone interested in markets, stocks, forex, futures, trading and investing can take this course.

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Start Here
02:40

My story with Japanese candlestick patterns and an introduction to the course.

Article

Just some details on the order of lectures and structure of the course.

Article

Legal disclaimer

Section 2: Candlestick Basics
04:08

A beginners introduction to Japanese candlestick chart patters. What they are and how they are built.

03:40

What makes up the Japanese candlestick chart and introduction to the simple candlestick patterns.

04:25

Some history behind the candlestick. Who was Munehisa Homma?

Section 3: Test Procedure
05:41

Information about how we will set up the test environment in order to test the power of the candlestick patterns.

05:50

We will conduct two different tests and we will present the data in tables so you can see how each candlestick pattern performs on the data.

Section 4: Testing The Candlesticks
09:08

We introduce the hanging man, how it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:08

We introduce the hammer candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:57

We introduce the inverted hammer candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:51

We introduce the shooting star candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:14

We introduce the morning star candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:05

We introduce the evening star candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:00

We introduce the gravestone doji pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:15

We introduce the dragonfly doji candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:15

We introduce the bullish kicker candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:15

We introduce the bearish kicker candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:46

We introduce the bullish engulfing candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:26

We introduce the bearish engulfing candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:17

We introduce the bullish harami candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:44

We introduce the bearish harami candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:48

We introduce the bullish spinning top candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:35

We introduce the bearish spinning top candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:47

We introduce the bullish abandoned baby candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:48

We introduce the bearish abandoned baby candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:24

We introduce the three white soldiers candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:17

We introduce the three black crows candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:50

We introduce the three line strike candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:05

We introduce the peircing line candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

01:24

We introduce the dark cloud cover candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

02:00

We introduce the tweezer top candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:12

We introduce the tweezer bottom candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

03:18

We introduce the loose kicker candlestick pattern. How it is used and what it means. Then we test the pattern on historical data – 21 different futures and forex pairs and then 100+ US stocks are analysed to see how powerful this pattern really is.

Section 5: Test Your Knowledge
20 questions

Test your knowledge of Japanese candlesticks. Can you identify the right patterns?

Section 6: Observations
05:27

Some observations and conclusions. What we have learnt so far.

00:49

A quick clip showing the best candlestick pattern of them all.

Article

The big table of results showing average profit or loss for each candlestick pattern. 

Section 7: Confirmations And Combinations
03:08

Our analysis shows that by incorporating volume into the trading rules it is possible to increase the profit potential of the bullish engulfing pattern and this has implications for other candle patterns too.

02:55

Our analysis shows that by incorporating RSI into the trading rules it is possible to increase the profit potential of the piercing line pattern and this has implications for other candle patterns too.

03:54

Our analysis shows that by incorporating exponential moving averages into the trading rules it is possible to increase the profit potential of the hammer candlestick pattern and this has implications for other candle patterns too.

07:53

In this lecture I use the analysis that we have shown so far to come up with a unique and complete trading strategy for stocks. This is simulated using Amibroker and back-test on data between 2000-2015 with profitable results.

Section 8: Where Next?
Article

In this article I give a round-up of my top tips for trading candlesticks based on the analysis presented on the course.

00:54

Although we are near the finish, this course doesn't end here. I intend to keep researching candlestick patterns and when I find something interesting I will update the course.

Section 9: Resources
Article

This lecture contains the candlestick poster/ cheat sheet to go along with the course.

01:51

This lecture contains the Amibroker exploration code that will allow you to scan your own watchlists for the candlestick patterns as they have been designed for this course.

Article

Candlesticks eBook to go along with the course containing the course script and tables of results.

Article

A list of other useful sources of information and books about Japanese candlesticks.

Section 10: Final Bonus Lecture
Article

My other Udemy courses are listed here for your convenience.

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Instructor Biography

Joe Marwood, Trader & Investor

Joe B Marwood is a seasoned trader and investor specialising in financial trading and trading systems.

He began his career day trading stock and bond futures for a trading firm in London and now works through his own private company.

FAQ

How did you get started?

I started my career as a professional day trader for a London-based firm where my principal products were the FTSE 100 future and German Bund.

Today I trade a portfolio of individual stocks and I have a passion for building automated trading strategies and systems.

What is your trading style?

I use a semi-automated strategy to trade stocks on an end of day basis. I look at both fundamental and technical analysis and use strategies that are based on historical simulations. I combine those strategies with my own experience and discretion to come up with trades that I believe are the most attractive on a risk/reward basis.

Mean reversion or trend following?

I have found that traditional trend following methods do not work as well as they once did. My methods are based on my own observations on the market whether they are based on momentum, trends, mean reversion or anything else.

Who taught you how to trade?

My mentor was a former head of trading at a well known German investment bank. I have also read and studied countless books, journals, and articles, and have spent many hours in the market. You can never stop learning.

Why did you make this course?

To educate others so that they don't make the same mistakes I made. Learning to trade can be a very expensive and drawn out process. As a trader, it is also extremely beneficial to have sources of side income as that takes the pressure off your own trading. Putting what I have learnt into a course also solidifies my own learning.

What are the secrets to successful trading?

First of all, you must have the passion to succeed. If you are in it only for the money you will have a very tough time and will be doomed to failure. You must also be comfortable with risk and be able to separate your emotions from the money.  Having a system with a profitable expectancy is also crucial and for that you will likely need a strong ability with numbers.

Why do most traders fail?

Most traders start off under-capitalised and then chase unrealistic returns which results in them blowing their account after a couple of big losses. Most beginner traders do not realise the realities of trading which is why they have trouble sticking to trading plans and dealing with their emotions. Trading should be treated as a business.

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