The Japanese Chart Of Charts By Seiki Shimizu
Introduction
Seiki Shimizu, a Japanese trader, created the Japanese Chart of Charts in the 1960s. The chart is a combination of three different chart types - line, bar, and candlestick charts. It is a unique and powerful tool for technical analysis in the financial market.
History of the Japanese Chart of Charts
Seiki Shimizu developed the Japanese Chart of Charts in response to the limitations of traditional charting methods. He wanted to create a chart that could provide a comprehensive view of the market and help traders make more informed decisions.
The chart was first published in Japan in the 1970s and quickly gained popularity among traders. It was later introduced to the Western world in the 1990s and has since become a widely used tool for technical analysis.
Features of the Japanese Chart of Charts
The Japanese Chart of Charts combines the features of three different chart types - line, bar, and candlestick charts. It provides a comprehensive view of the market and helps traders identify trends and patterns.
The chart is easy to read and interpret. It uses different colors and shapes to represent different market conditions, making it easier for traders to understand the market movements.
How to Use the Japanese Chart of Charts
The Japanese Chart of Charts can be used to analyze any financial market, including stocks, forex, and commodities. Traders can use it to identify trends, patterns, and potential reversal points.
The chart is based on the concept of "price action" - the movement of prices over time. It uses different colors and shapes to represent different market conditions, such as bullish and bearish trends, support and resistance levels, and price patterns.
Bullish and Bearish Trends
The Japanese Chart of Charts uses different colors to represent bullish and bearish trends. A bullish trend is represented by a white or green background, while a bearish trend is represented by a black or red background.
Traders can use the chart to identify the direction of the trend and make buy or sell decisions accordingly. For example, if the chart shows a bullish trend, traders may look for opportunities to buy, while if it shows a bearish trend, they may look for opportunities to sell.
Support and Resistance Levels
The Japanese Chart of Charts uses horizontal lines to represent support and resistance levels. Support levels are levels at which buyers are likely to enter the market, while resistance levels are levels at which sellers are likely to enter the market.
Traders can use the chart to identify these levels and make trading decisions accordingly. For example, if the chart shows a support level, traders may look for opportunities to buy, while if it shows a resistance level, they may look for opportunities to sell.
Price Patterns
The Japanese Chart of Charts uses different shapes to represent price patterns, such as triangles, rectangles, and head and shoulders patterns. These patterns can provide valuable information about the future direction of the market.
Traders can use the chart to identify these patterns and make trading decisions accordingly. For example, if the chart shows a bullish price pattern, traders may look for opportunities to buy, while if it shows a bearish price pattern, they may look for opportunities to sell.
Conclusion
The Japanese Chart of Charts is a powerful tool for technical analysis in the financial market. It combines the features of three different chart types - line, bar, and candlestick charts - to provide a comprehensive view of the market.
Traders can use the chart to identify trends, patterns, and potential reversal points. It is easy to read and interpret, making it a popular tool among traders.