is widely considered the definitive masterwork on traditional Japanese technical analysis, introducing Western traders to the intricate world of Japanese candlesticks and specialized charting techniques. Published originally by the Tokyo Futures Trading Publishing Co. in 1986, this iconic text bridges the gap between historical Japanese trading philosophies and modern market technicals.
A core section details the Sakata Constitution ( Soba Sanni No Den ), which includes the "Three Mountains," "Three Rivers," and "Three Gaps" used to identify major market turning points.
Review the intricate hand-drawn historical charts included in Shimizu’s original text.
: These are critical in identifying potential trend reversals. Shimizu discusses various patterns such as the Hammer, Hanging Man, and the Three White Soldiers, among others. Each of these patterns provides insights into market sentiment and potential shifts in direction.
Finding physical editions of The Japanese Chart of Charts can be incredibly difficult and expensive, with out-of-print physical copies often retailing for hundreds of dollars among rare book collectors. Consequently, digital formats have become highly sought after. The Japanese Chart Of Charts By Seiki Shimizu Pdf
Shimizu emphasizes that a single candlestick is a visual summary of a battle fought over a specific timeframe. By analyzing the relationship between the Open, High, Low, and Close, a trader can determine who won the battle: the bulls (buyers) or the bears (sellers).
The book, aimed at both novice and experienced traders, offers an in-depth exploration of the principles and applications of candlestick charting. Shimizu's work is not just about understanding the individual candlestick patterns but also about grasping how these patterns can be combined to form more complex and meaningful chart configurations.
What Western traders call "gaps." Shimizu outlines strict rules for how gaps act as powerful support and resistance zones.
Unlike many Western systems that rely heavily on mathematical indicators, this book emphasizes "reading" the market through visual price formations and emotional cues. A core section details the Sakata Constitution (
The book covers foundational patterns that are now standard in global trading:
Use traditional Japanese price formations to identify major market turning points. Commodity Trading
: Seiki Shimizu was a prominent figure in the Japanese commodity futures industry and was even awarded the Blue Ribbon Medal by the Japanese Emperor for his contributions.
It documents how these techniques originated in the 17th-century Japanese rice markets, originally drawn with India ink on Washi paper. Purchasing and Access Shimizu discusses various patterns such as the Hammer,
| Pattern Name | Appearance (Candles) | Signal | Modern Name (Approx.) | | :--- | :--- | :--- | :--- | | | Black real body, very long lower shadow, short upper shadow. | Bullish reversal in downtrend. | Dragonfly Doji (amplified). | | The Floating Fan | Three gaps down, each with smaller bodies. | Exhaustion – reversal imminent. | Three Gaps Down. | | The Iron Hammer | Opens high, closes near low, but extremely long upper shadow. | Bearish rejection of higher prices. | Shooting Star (severe). | | The Separating Window | Gap up, then a black candle that fills the gap but closes inside prior candle. | False breakdown – continuation up. | Bullish Harami with window. | | The Twilight Spider | First candle: Marubozu. Second: Doji at midpoint of first body. Third: Opposite Marubozu. | High volatility reversal (tweezer top/bottom). | Abandoned Baby / Island Reversal. |
: Candlestick patterns often produce reversal signals two to ten periods earlier than Western tools like MACD or Moving Averages.
Before there were complex combinations of 20 candles, there were the Sakata Methods, attributed to Homma. Shimizu meticulously details these patterns, which form the bedrock of Japanese charting: