(March 15, 2015) The third edition of The Reversal Charts is now available.
It includes new articles which can be seen at the Table of Contents.
The French, Spanish and German versions do not include the additions to the second and third English editions.
(August 1, 2013) Celebrating 10 years!
One morning in August 2003, investors around the globe woke up to a new reality: the old and neglected Japanese charts of Kagi, Renko and Three-line Break were staring at them from MarketTide.com.
Since then, dozens of blogs and forums about these buried treasures mushroomed on the Internet, software makers rushed to add these ancient charts to their technical analysis packages and many traders/web site owners began beaming their version of the charts in cyberspace, all this because of the wisdom emanating from Kagi, Renko and Three-line Break.
No major analytical software is without these charts now in 2013, ten years after the publication of The Reversal Charts (TRC) because of the unique information the book contains.
Names like ‘hybrid Renko’ started to show up on the Net trying to do justice to new formulas calculating modified graphic displays of these charts but without actually adding new substance to the concepts behind the charts.
Instant amazement: indicators, charting style and mechanical trading systems rolled into one piece of information?
Yes, 400 years old graphics yet fresh like yesterday.
Initial response from TRC buyers has been very good. Most of them wrote back to say ‘Thanks John for sharing the information’ plus many more heartfelt words. For the past few years (aah!, the 2008 recession … ), buyers grew fewer and gratitude dried up as if paying for an e-book absolves someone from being courteous.
Does cyber-trading go well without courtesy for long?
With cheap computers and easy Internet access, more and more working-class people entered the stock markets not for the quest for knowledge which the markets ignite, but for their unjustified hopes of paying the monthly bills.
(To me the recession has been a fantastic opportunity to analyze crowd behavior in progress).
Another achievement has been the surprise acknowledgments from total strangers. Coming across hundreds of links and dozens of web sites on Kagi, Renko and Three-line Break while searching on the Internet can only be a joy and a reward for doing the right thing when I discovered back in 2001 that no detailed information on these old Japanese charts existed: there was absolutely no reason for me to keep knowledge about these wonderful charts secret because they were very old and known to a certain degree already. All I needed to do was to hurry up in seizing the moment to create a long lasting opportunity, and that’s exactly what I did.
Will my readers agree with me that I unleashed a beautiful genie out of the bottle and started my own trend?
No great event comes without negativity.
In the case of TRC, the grossest negativity came from sheer plagiarism in the Stocks & Commodities magazine which published an article by someone who had purchased my e-book in Feb. 2005 and then wrote the article omitting to mention MarketTide.com as the exclusive source of information, http://store.traders.com/stcov254trre.html.
Same mistake for another person who bought TRC in Jan. 2009 and then published a book on “alternative” charts with Bloomberg Press in July 2010. (Please note: Kagi, Renko, Three-line Break and Point & Figure precede all the other charting styles and calling them ‘alternative’ is wrong. The bar chart is ‘alternative’).
Times to come and the public will be their judge.
As for insignificant negativity, why talk about it? It’s normal for small minds to do small things and get small rewards, and for great minds to ignore them. Without getting into details, I must mention that, as an e-book, it was easy for some TRC buyers to resell it, lend it, give it away or abandon the teachings therein, which makes me wonder how successful they became after that.
Kagi, Renko and Three-line Break have been used for hedging purposes: wealthy rice crop owners and big merchants 400 years ago wanted to protect themselves against catastrophic losses at harvesting time and delivery of crops. They devised one way of splitting risk among crops and trading futures: losses from crops were reduced with profits from financial speculation and losses from such speculations were diminished or offset by profits from crops (assuming that the total dollar value of futures contracts invested in speculation amounted to the estimated crop sale price as closely as possible or exceeded it).
One thing was sure for businessmen: they would never be taking losses (or profits) from crops and speculation simultaneously.
Kagi, Renko and Three-line Break worked very well for wealthy businessmen of yesteryear fulfilling an important role: locking in profits. This is why the old Japanese charts resisted the passage of time and offered the best business model.
How Kagi, Renko and Three-line Break will work for the cyber-traders of today who have nothing to hedge is anybody’s guess …
The old Japanese charts remain testimony of the perfect way in which crop owners and merchants balanced supply with demand to make prices affordable to the masses, and an incontestable proof of civic responsibility no big talkers such as country presidents or Popes will ever have.
Kagi, Renko and Three-line Break are gems of innovations coming from responsible individuals whose goal was not to burden consumers with rip-off prices like there is no tomorrow but rather to establish fair prices during the ever-changing up-trends and downtrends of crop supply and public demand every year.
How was it possible for such marvelous charting tools to be developed using only pen and paper while modern warriors with fast computers using high-speed Internet today beat around the bush unable to show anything of similar top quality?
10 years of sales and widespread public acceptance made TRC a once-in-400-years book. I am happy with that and I thank everybody who visited my web sites or bought The Reversal Charts and TSTS one more time.
Readers, please remind yourselves and tell everybody that cyber-trading is more than hiding at home behind the computer to pay bills, mortgages or buy a cheap tropical vacation from stock markets profits …