The Secret Of Candlestick Charting — Louise Bedford.pdf

This is Bedford's favorite shorting strategy. It requires a massive green day followed by a red day that opens above the high of the green day but closes below the midpoint of the green day.

Candlestick charting is valuable for several reasons:

So, you have the PDF. Now what? You cannot trade with a book open on your desk forever. Here is how to digitize the "Secret of Candlestick Charting" into TradingView or MetaTrader 5. The Secret of Candlestick Charting Louise Bedford.pdf

Step 1: The Bedford Scanner Go to your stock screener. Filter for stocks that have had a 20% drop in the last 10 days (this finds the "exhaustion" zone). Then, manually scan for Hammer or Piercing patterns.

Step 2: The "Louise" Layout Set up your chart with three panes: This is Bedford's favorite shorting strategy

Step 3: The Bedtime Routine Bedford’s ultimate secret is preparation. Instead of trading at 9:30 AM, she studies the daily charts at 8:00 PM. She places limit orders to buy at her calculated "entry price" for the next morning, then goes to sleep. This removes emotion.

Unlike many candlestick books (e.g., Nison’s classic), Bedford focuses on: Candlestick charting is valuable for several reasons: So,

  • Continuation patterns: Candlesticks also form flags, pennants, and small consolidation candlesticks that suggest trend continuation rather than reversal.
  • Context matters: Candlestick signals are meaningful when aligned with broader price structure — trend direction, support/resistance levels, moving averages, and volume confirmation.
  • Timeframe alignment: Patterns on higher timeframes (daily, weekly) carry more weight than intraday signals; consistency across timeframes improves reliability.
  • Risk management: Bedford emphasizes setting stops beyond logical invalidation points (e.g., beyond recent swing high/low or candle extremes) and sizing positions to manage risk.
  • Psychology and discipline: Reading candlesticks is as much about understanding trader behavior as it is about pattern recognition; patience and strict trade rules are necessary for consistent results.

    • If you open The Secret of Candlestick Charting, you will learn about Dojis, Hammers, and Engulfing patterns. That is the boring stuff. The real secret of the book lies in three unique frameworks.