The Secret Code of Japanese Candlesticks

Unlock the hidden wisdom of Sokyu Honma, the legendary Japanese rice trader whose timeless principles shaped modern candlestick analysis. The Secret Code of Japanese Candlesticks by Felipe Tudela goes beyond patterns and signals, taking you deep into the philosophical and strategic foundation of Japanese trading methods.

Unlike most candlestick books that only catalog patterns, Tudela reveals the Samni No Den (the five rules of trading psychology and discipline) and the Five Sakata Methods (the original Japanese pattern-based strategies). These methods form what he calls Honma’s Great Market Cycle—a complete system that integrates market phases, entry timing, risk management, and trader psychology into one cohesive approach.

With a blend of Eastern philosophy and Western technical analysis, Tudela demonstrates how candlesticks act as precision tools, not stand-alone signals. Through detailed explanations, algorithmic tables, and 37 real-world applications across stocks, indexes, and futures, readers learn to identify triple tops (San Zan), triple bottoms (San Sen), gaps (San Ku), trends (San Pei), and corrections (San Poh).

More than just a trading manual, this book serves as a trader’s guide to discipline, timing, and strategy, offering both the technical and mental framework required to thrive in any market environment. Whether you’re a beginner to candlestick trading or an experienced analyst, this text provides the missing link between pattern recognition and professional execution.

✅ What You’ll Learn:

• The Samni No Den, Honma’s five psychological and behavioral rules for mastering greed, patience, timing, and risk control.
• The Five Sakata Methods, the original Japanese trading strategies based on market phases: San Zan (three mountains), San Sen (three rivers), San Ku (three gaps), San Pei (three lines), and San Poh (three rests).
• How to integrate candlestick patterns such as Marubozu, Three White Soldiers, and Three Black Crows into Honma’s cyclical framework for precise trade entries.
• How to use algorithmic trading formulas that connect candlestick signals with broader market cycles.
• Practical step-by-step applications of these methods to indexes, stocks, and futures markets.
• Techniques for exiting trades, setting stops, and managing risk to maximize profits while protecting capital.
• Insights into the philosophy of trading, inspired by Bushido principles, that help traders build discipline and mental clarity.

💡 Key Benefits:

• Gain a complete Japanese trading methodology, not just a list of candlestick patterns.
• Learn to time entries and exits with confidence by aligning trades with market phases.
• Build a strong foundation in trading psychology and discipline, essential for long-term success.
• Access 37 real-world trading examples for practical learning and application.
• Develop a repeatable, rule-based algorithm for consistent results.
• Discover the historical roots of candlesticks and how to use them with precision.

👤 Who This Book Is For:

This book is ideal for:

• Traders seeking to move beyond basic candlestick recognition to a complete trading system.
• Students of technical analysis who want to understand the Japanese origins of candlestick methods.
• Experienced traders looking to improve risk management, trade exits, and market timing.
• Anyone who values the integration of psychological discipline with technical trading strategies.

📚 Table of Contents:

• The Truth about Japanese Candlesticks
• The Spirit of Sokyu Honma’s Method: The Master and the Disciple
• The Samni No Den of the Market: The Subjective Part of the Method
• The Five Sakata Methods: The Objective Part of the Method
• Trading with Sokyu Honma’s Method
• Japanese Candlesticks: A Precision Tool within the Market’s Great Cycle
• Algorithm in Tabular Format for the Five Sakata Methods within Sokyu Honma’s ‘Great Cycle’
• Thirty-seven Applications Involving Indexes, Stocks, and Futures
• Back to the Samni No Den
• Learning to Analyze the Markets from a Trader’s Viewpoint
• Your Magic Talisman
• Before Taking a Position … Think!
• How to Exit a Trade
• How to Manage Your Risk
• All You Will Ever Need to Know about Stops
• Putting It All Together in a Simple but Winning Approach
• Trade Now!
• Some Thoughts about Trading Philosophy