Sorting out your hammers from your dojis
I’ve long been a fan of candle charts, not because I especially understand them, but more because I like the way they brighten up my Reuters screen.
So I was very pleased this week to receive a book written by another old contact, Clive Lambert, explaining in simple terms what they are all about and how to interpret their patterns.
Smiley Clivey, as he is known, used to work down on the Liffe floor. When that shut and he moved into an office, he found that candle charts gave him a visual feel for the price action in the same way that open outcry trading did. He subsequently set up FuturesTechs to provide technical analysis and is now on the board of the UK Society of Technical Analysts.
So, if like me, you thought a doji was where you played judo, or that a bearish engulfing pattern was your wife’s view of you when you woke up in the morning, I recommend taking a peek at Clive’s book. It’s called, simply, Candlestick charts, making it easy to remember.