: While rooted in Japanese tradition, the principles outlined in the book have universal applicability, making them relevant for traders and analysts across different markets and cultures.
For traders and investors seeking to master the art of technical analysis, understanding the roots of candlestick charting is essential. One of the most authoritative, yet sometimes elusive, texts on this subject is . While many modern traders rely on simplified, automated tools, Shimizu’s work provides a deep dive into the foundational methodology that transformed how market technicians interpret price action.
: The historical precursor to the head-and-shoulders pattern.
Before 1986, Japanese candlestick charting was a relatively unknown method outside of Japan. Shimizu's work served as a crucial bridge, offering a systematic and detailed explanation of concepts that were previously passed down through generations within Japanese trading circles. Seiki-shimizu-the-japanese-chart-of-charts-pdf
The Japanese chart of charts by Seiki Shimizu | Open Library. View 1 Edition. Open Library The Japanese chart of charts | WorldCat.org
According to the principles found in the WorldCat library listing and the Open Library entry :
: For those new to candlestick charting, the book serves as an excellent primer. For more experienced practitioners, it offers advanced techniques and strategies to refine their analysis. : While rooted in Japanese tradition, the principles
: Unlike modern simplified black-and-white charts, Shimizu originally detailed a more complex color system to represent varying market sentiments. 8 to 10 Record Highs
: It emphasizes identifying turning points through specific formations like the Three Mountains, Three Rivers, and Three Gaps. Practical Applications :
To truly master this system, the PDF includes "30-Day Meditation Drills." Here are three take-home drills you can do with any charting software: While many modern traders rely on simplified, automated
Here's a guide related to the Seiki Shimizu Chart of Charts:
To understand why Shimizu's book is highly sought after, it is useful to see how these techniques contrast with Western technical analysis tools: Chart Type / Concept Primary Focus Main Advantage Disadvantage Fixed time intervals (Open, High, Low, Close) Excellent for volume analysis and clear time mapping. Highly susceptible to random intra-day market noise. Three-Line Break Absolute price changes and broken thresholds
Shimizu highlights that a price chart is not just a mathematical record of numbers, but a visual mirror of human emotion—specifically the battle between greed and fear. The book teaches readers to view open, high, low, and close levels as an unfolding psychological war between buyers (bulls) and sellers (bears). 2. The Sakata Rules (Sakata Gopo)
: Shimizu details how these observations evolved into the "Kandle" or Candlestick, a method to capture four data points (Open, High, Low, Close) in a single visual "body." 3. Core Technical Components