Now, let's move to candlestick patterns: As discussed in an earlier chapter, the Japanese candlestick is my favorite representation of the price movement of an equity. I find it's the most efficient representation of the price movement to determine what happened to the PPS of a stock on any given day.

But there is more to it than just telling you if a stock moved up or down.

The actual “look” of the candle can actually be used to predict the future direction of the PPS (price per share). I will describe the most famous of these candlesticks in this section.

I will also introduce the concept of candlestick formations. These are very important figures that can also help predict the future direction of the PPS when using technical analysis.

Now let’s see if YOU can see it!

This section is divided into the following 4 chapters The first one deals with the Japanese candlesticks themselves.