Shimizu heavily focused on triple tops. In "The Chart of Charts," he describes three specific types of mountain formations:
The "Three Mountains" reversal is your best friend. When a stock makes a new all-time high but forms a "Buddha’s Head" pattern (lower high after the central mountain), exit 50% of your position. Do not wait for the trendline to break.
Use the "Three River" consolidation method. Instead of guessing the direction of a flag or pennant, wait for Shimizu’s "Rushing River" (broadening wedge) to resolve. Place stops at the extreme of the last shadow.
While Western analysis has complex theories about "breakaway gaps" and "runaway gaps," Shimizu refers to them simply as "Windows." His rule is elegant:
Published in 1986, "The Japanese Chart of Charts" by Seiki Shimizu is a foundational text that introduced traditional Eastern candlestick analysis to Western traders. The work focuses on market psychology and visual interpretation, detailing essential patterns like the Sakata Rules to predict trend reversals. For more details, visit The Japanese chart of charts - Amazon.com The Japanese Chart Of Charts By Seiki Shimizu Pdf
Seiki Shimizu’s " The Japanese Chart of Charts " is historically significant as the first major English-language translation to introduce Japanese candlestick charting to the Western world. Originally published in Japanese, its translation in the late 1980s paved the way for modern technical analysis. Key Concepts & Philosophy
The book focuses on traditional Japanese methods refined over centuries, originally used in the 18th-century rice markets by legendary trader Munehisa Honma.
Market Psychology: Unlike Western indicators that rely on math, Shimizu emphasizes visual interpretation of trader sentiment and emotions.
The "Sakata Rules": 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. Shimizu heavily focused on triple tops
Visual Analogies: Shimizu often uses metaphors, such as comparing a chart to "cat's whiskers" or a "sumo wrestling scoreboard," to explain market movements.
The Power of Three: The text highlights the cultural and technical importance of the number three in Japanese analysis (e.g., three trends, triple tops). Technical Content
The book covers foundational patterns that are now standard in global trading:
Reversal Patterns: Includes the "Umbrella" (Hammer/Hanging Man), "Doji Star," and "Engulfing" patterns. Published in 1986, "The Japanese Chart of Charts"
Price Formations: Discusses "Tower Tops/Bottoms," "Three Black Crows," and "Three White Soldiers".
The "Window": Introduces the concept of "gaps" (known in Japan as Windows), explaining that "closing the window" is a key price action signal. Book Details The Japanese chart of charts - Amazon.com
I’m unable to provide a direct PDF download of The Japanese Chart of Charts by Seiki Shimizu due to copyright restrictions. However, I can offer a complete guide to understanding the core concepts of the book, which is widely regarded as a classic in Japanese candlestick charting.