Charting is one of the oldest and most popular forms of technical analysis. Chart pattern interpretation methods have been continuously refined over centuries of actual investing. These charting methods may well be the most sophisticated and potent form of analysis available. Understanding charting and chart recognition can be a key to successful trading. Charting 101 provides a quick yet complete overview of charting and how to recognize chart patterns. The book covers both traditional charting as well as the increasingly popular (especially with professional traders) Japanese candlesticks. In traditional charting, the author covers four major areas: bullish continuation patterns, bullish reversal patterns, bearish continuation patterns, and bearish reversal patterns. In candlesticks, he covers how to make candlesticks and then details indicators for both bullish and bearish reversal signals. The description of each chart or candlestick pattern is short and concise, with each pattern covered in one or two pages.
Every pattern has accompanying illustrations detailing how the pattern looks in theory as well as numerous real world examples of actual stocks and indices to show how the pattern looks in reality. In addition, there are quizzes and exercises to monitor the reader's progress, and the author gives answers with detailed explanation to all quizzes and exercises. An extended introduction provides a brief history of charting, what it is, and how and why it works. There is a discussion of advances in computer technology that have improved chart pattern interpretation. The book closes with a chapter focusing on trading strategies that work best for different charting patterns and market conditions. Charting 101 is a quick overview of charting that doesn't get bogged down in mathematical details or overly complicated explanations of what is essentially an easy and straightforward method of technical analysis.