Profitable Candlestick Trading: Pinpointing Market Opportunities to Maximize Profits

Profitable Candlestick Trading by Stephen W. Bigalow is a comprehensive and practical guide to mastering the art of Japanese candlestick charting for profitable trading in stocks, options, futures, and other markets. Bigalow, a seasoned trader with decades of Wall Street experience, demystifies candlestick patterns and demonstrates how these time-tested signals can help traders anticipate market turns with precision.

The book begins with the history and basics of candlesticks, explaining how to read real bodies, shadows, and key formations. Bigalow shows why candlestick charts are superior to bar charts in reflecting investor psychology and market sentiment. He emphasizes how candlesticks help traders eliminate emotional decision-making and improve consistency.

In the main sections, readers are introduced to major reversal and continuation patterns such as Doji, Hammers, Hanging Man, Engulfing Patterns, Morning and Evening Stars, Three White Soldiers, and Harami. Bigalow explains the psychology behind each signal, their reliability, and how to apply them to live markets. Advanced chapters extend into Elliott Wave, stochastics, gaps, trendlines, and option strategies, demonstrating how candlesticks can be seamlessly integrated with Western technical analysis methods.

Practical chapters on risk management, trade evaluation, portfolio design, and money management equip readers with the tools to trade professionally. Bigalow also introduces the concept of the Ultimate Investment Program, showing how traders can combine candlestick analysis with sound financial planning to generate long-term wealth.

With over 300 pages of charts, examples, and strategies, this book serves both as a detailed textbook and as a hands-on reference. Traders seeking clarity, confidence, and a proven edge will find Profitable Candlestick Trading an indispensable resource.

✅ What You’ll Learn:

• The fundamentals of candlestick charting, including real bodies, shadows, and essential formations.
• How to recognize and trade reversal patterns such as Doji, Hammers, Hanging Man, Engulfing Patterns, Morning Star, Evening Star, and Shooting Star.
• Key continuation patterns including Three Methods, Tri-Star, Towers, and other multi-candle signals.
• The psychology behind each candlestick pattern and why markets react the way they do.
• How to integrate candlesticks with Western indicators like stochastics, moving averages, and Elliott Wave.
• Effective use of gaps, trendlines, and volume analysis to confirm candlestick signals.
• Practical risk management techniques, including stop-loss placement and money management.
• Strategies for using candlesticks in options trading and portfolio management.
• The Ultimate Trading and Investment Program to create long-term wealth.

💡 Key Benefits:

• Master powerful candlestick signals to anticipate market reversals.
• Eliminate emotional trading mistakes by trusting visual price action.
• Learn to combine candlesticks with Western technical tools for stronger analysis.
• Discover low-risk, high-probability trade setups.
• Build a structured risk management and money management plan.
• Apply candlestick techniques to stocks, options, futures, and commodities.
• Access over 300 illustrated chart examples for hands-on learning.

👤 Who This Book Is For:

• Beginner traders looking to learn candlestick patterns from scratch.
• Intermediate traders wanting to refine their technical analysis and timing skills.
• Options, futures, and stock traders seeking proven methods for entries and exits.
• Investors who want to avoid emotional mistakes and trade with discipline.
• Anyone interested in mastering candlestick trading for consistent profitability.

📚 Table of Contents:

Chapter 1: Introduction

• Benefits from the Candlestick System
• A Successful History
• Consult the Market About the Market
• Candlestick Charts Versus Bar Charts
• Forming the Candlesticks
• Exploiting Reason While Eliminating Emotion
• Becoming a Profitable Candlestick Investor
• Fundamental vs. Technical Analysis
• Human Emotion and Ego in Trading
• Ultimate Criteria for the Optimal Trading Program

Chapter 2: Reversal Patterns

• Candlestick Formations (Long Days, Short Days, Marubozu, Doji, Spinning Top, Hammers, Hanging Man, Engulfing, Harami, Morning/Evening Stars, Shooting Star, Kicker, etc.)

Chapter 3: Continuation Patterns

• Upside/Downside Gaps
• Three Methods
• Rising and Falling Windows
• Tri-Star, Tower Tops/Bottoms, and other multi-candle signals

Chapter 4: Profitable Strategies

• Integrating Candlesticks with Stochastics
• Trading Channels and Trends
• Confirmations and Divergence

Chapter 5: Advanced Candlestick Analysis

• Elliott Wave Applications
• Gaps and Volume Analysis
• Options and Strategic Spreads
• Portfolio and Trading Programs