Tag: candlestick charts

We might look at them every single day and dream of them but do you actually know the history of the candlesticks used on charts, otherwise known as Japanese candlesticks. Believed to have been born as the idea of Munehisa Homma in the 1700s, Japanese candlesticks first appeared in Japan. Munehisa was a Japanese rice trader and apparently identified that fear and greed affected the price of the markets, in addition to the law of supply and demand. The principle of the Japanese candlesticks is to measure the emotions in the market. The candlestick allows the trader to read more into the sentiment of the market that could otherwise be seen with a line graph. The time period a candlestick represents is often changed to help the trader get a holistic overview of the market 'emotion'. These ...

The Japanese Candlestick patterns are one of the most popular technical analysis tools in use today. Japanese Candlestick traces its roots to the Japanese rice traders, back in the 18th century. Over time, the Japanese Candlesticks have become one of the most popular chart types. This is Part 1 in a series of articles explaining the Japanese Candlestick Patterns. They are visual patterns easily seen on a trading chart. The patterns are made up of one or up to three candlesticks in a trading chart. These visual patterns depict the relationship between individual candlesticks. It does not involve any mathematical calculations. The Japanese Candlesticks are purely visual and potentially signals changes in the market sentiment. They can predict reversal of trends or corrections in a trend.