A method used to filter out market noise and identify trend reversals.
In an era before digital trading, Shimizu’s guide meticulously explained how to physically draw charts on paper, moving from right to left, and how to adjust vertical scales for different assets. Seiki-shimizu-the-japanese-chart-of-charts-pdf
One of the most famous sections of the book discusses the divine importance of the number three in Japanese culture, which translates into trading patterns like Sakata’s Five Methods —including Three Mountains (triple tops), Three Crows, and Three Gaps. A method used to filter out market noise