Before Western traders like Steve Nison popularized candlesticks in the late 1980s, Shimizu’s text was the only comprehensive guide available in English.
The impact of The Japanese Chart of Charts has been profound and sustained. By translating this work into English, Seiki Shimizu ignited a revolution in Western technical analysis. Without his book, it is unlikely that candlestick charting would have become the global standard it is today. The book opened the door to a more nuanced view of market psychology, moving beyond simple price bars to a richer visual narrative of supply and demand.
Detailed breakdowns of Morning and Evening Stars, focusing on the volume and velocity required to confirm a true reversal. 4. The Concept of Counter-Attack Lines
Compare Japanese candlestick philosophy with . The Japanese Chart Of Charts By Seiki Shimizu Pdf
While most traders only know candlesticks, Shimizu introduces the broader context of the Sakata's Five Methods (Three Mountains, Three Rivers, Three Gaps, Three Methods, Three Lines). This provides a structural framework for chart reading that goes beyond single candle patterns, offering a more holistic view of market tops and bottoms.
A major highlight of Shimizu's book is the detailed explanation of the Sakata Rules. These five patterns form the backbone of traditional Japanese trend analysis:
To trade like Shimizu in the modern era, focus on these actionable steps: Without his book, it is unlikely that candlestick
Modern traders often treat a Doji (a candle with a tiny body) as a simple signal of indecision. Shimizu treats it with far more reverence. In The Japanese Chart of Charts , the Doji is often a warning siren.
Shimizu details how thickness variations (Yang and Yin lines) signal structural trend reversals. 3. Renko Charts
Explores the legendary "Sakata Five Methods," a series of trading rules based on market phases (San-zan, San-sen, etc.). He famously stated
Shimizu was also known for his colorful and insightful analogies. He famously stated, "A chart is like a cat’s whiskers," illustrating how charts, like whiskers, provide crucial sensory information about the market's environment. In another passage, he writes, "Standing on the corner we notice many things… in the case of a skip rope...," demonstrating his ability to find everyday metaphors for complex market dynamics. These philosophical asides set his work apart, offering a holistic view of trading that integrates logic, psychology, and intuition.
To understand the value of the book, one must understand its historical context. While Western traders were relying primarily on bar charts and point-and-figure charts well into the 20th century, Japanese traders had been refining candlestick analysis since the 1700s, starting in the Dojima Rice Exchange.
Before diving into the mechanics of the book, it is essential to understand the author. Seiki Shimizu was a Japanese market master and the founder of the Tokyo Chart Analysis Research Institute. Unlike contemporary analysts who view markets through a purely mathematical lens, Shimizu viewed price movements as a reflection of human emotion—greed, fear, hope, and despair.