Beyond Candlesticks: New Japanese Charting Techniques Revealed (Steve Nison, 1994)

• See no evil - whenever there is bullish or bearish trend, get ready to go opposite direction.
• Hear no evil - whenever there is a bullish or bearish news, stop trading.
• Speak no evil - don't tell anyone what you going to do in the market.
• Long black confirms resistance
  
  
  
  
• Spinning top warn the lose of market momentum
  
  
  
  
• Doji is "tired" in Japanese
  
  
  
  
• Long shadow candles also called high-waves. The market lost its sense of direction in a trend when a high-waves emerge
  
  
  
  
• Hammer, hammering out the base
  
  
  
  
• Hanging man, the top become fragile
  
  
  
  
• Shooting star
  
  
  
  
• Dark cloud cover
  
  
  
  
• Piercing pattern
  
  
  
  
• Engulfing pattern (where the next candle is in opposite trend and much larger than itself)
  
  
• Harami (pregnant woman)
  

  

  
  
• Evening star, 3 candle patterns. There is stillness in the middle
  

  

  
  
  
• Do not trust the technical tools too much, even monkeys fall from the tree.
• In a trend, it is easier to run downhill than up one.
• Disparity index: comparing the close to the moving average
• Divergence index: how much price is diverted from the moving average