Candlesticks are a popular tool used by traders to analyze financial markets, including the foreign exchange (forex) market.
But, do you know about the history of candlesticks?
It all started in the 18th century in Japan, where rice traders used it to track the price of rice.
A Japanese rice trader named Homma Munehisa has developed a method of analyzing the rice market using candlestick charts.
The method involves tracking the opening and closing prices of rice for a certain period of time, as well as the high and low prices during that period.
Homma's approach is based on the idea that market psychology and emotions can be seen in price movements.
He believes that by analyzing the patterns formed by candles, traders can predict future price movements.
Despite this, candlestick charts were not widely used outside of Japan until the 1980s, when a trader named Steve Nison introduced them to the Western world.
Nison wrote several books on candlestick charts, which helped popularize the technique among traders.
Today, the candlestick chart is a widely used tool in forex trading.
They provide traders with a visual representation of price movements and can help identify patterns that indicate potential buying or selling opportunities.
Traders use candlestick charts in combination with other technical analysis tools to make their trading decisions.
