Candlesticks have become a popular analysis tool for spotting early signs of change, and here, technician Tom Aspray highlights one of its most revealing patterns, which can increase the odds in your favor.
Some of today's most popular technical indicators or trading methods can be traced back to a specific inventor but they are often not given credit by today's traders and analysts. As an "old school technical analyst," I have always felt it was important to give the inventor the proper credit.
Some of you may be familiar with what is referred to on most quote systems as the TRIN but should really be called the ARMS Index after its creator, Dick Arms. I fought this battle many years ago on the precursor to CNBC, and they did change it for a while, but it did not last.
That is the same reason that I have tried to give Joe Granville credit about on balance volume or Welles Wilder when I have talked about the RSI or ADX. I was first exposed to candle charts in 1989 when I was given a copy of The Japanese Chart of Charts by Seiki Shimizu during a speaking trip to Japan.