Japanese Candlestick Charts Explained

A Japanese candlestick chart is a form of bar-chart used to plot price movements of a derivative, security, or currency over time. Candlestick charts are believed to have been developed in the 18th century by Munehisa Homma, Japanese rice trader in the futures market. In Homma’s book “The Fountain of Gold – The Three Monkey Record of Money”, which he wrote in 1755, he claims that the psychological aspect of the market crucial to trading success and that traders’ emotions can significantly influence on rice prices. In his book, he observes that this fact can be used to position oneself...

read more