HISTORY OF CANDLESTICKS-Candlestick chart patterns pdf

                       History Of Candlesticks

Candlesticks have been around for ages, way longer than similar things in the Western world. Imagine, the Japanese were into these chart thingies way back in the 17th century, while the US only started getting into them in the late 19th century.

At that time, Japan was all about trading rice. It was huge there—almost more important than regular money. Munehisa Homma, a Japanese rice trader dude from the early 1700s, was super smart about watching how prices moved. He realized that feelings and stuff played a role in setting prices. He basically wanted to peek into how people felt in the market. That's how candlestick chart patterns analysis began, based on his work.

Homma was a big deal, even got promoted to Samurai status. The Japanese kept candlesticks under wraps until the 1980s when banks worldwide started mixing ideas. That's when the Western folks caught on. Also, PCs made charting way easier around that time.

Then in the late 1980s, Western analysts like Michael Feeny in the UK and Steve Nison in the US got really interested in these candlesticks chart patterns. Nison even made a paper and wrote a cool book about it. Since then, candlesticks became super popular among analysts everywhere.

Why are candlestick chart patterns important for trading? Well, they're like a visual story of what's happening in the market. They show us where the price started, went high and low, and ended. That helps us predict where prices might go. You can use them alone or mix them with other tools to understand the market better.

And here's the cool part: candlesticks give us a peek into people's emotions about money. Fear, greed, hope—those feelings impact how prices move. With candlesticks, you can see how buyers and sellers are dealing with these emotions.

Compared to regular bar charts, candlestick chart patterns give us even more info. They're used by the big league traders, banks, and hedge funds who move loads of money every day. If you don't understand this candlestick thing, these big players can easily take your money in the market.

Even if you've got a good amount to trade, like a hundred thousand dollars, you can't control the market. But learning candlestick chart patterns can help you figure out what the big shots are up to. It guides you on when to jump in, when to bail, and when to just stay out of the market.