When all are bearish, there is cause for prices to rise. Honma actually wrote a trading psychology book around 1755 claiming that emotions impacted rice prices considerably. Thus, he devised a system of charting that gave him an edge in understanding the ebb and flow of these emotions and their effect on rice future prices. 3Īs the father of candlestick charting, Honma recognized the impact of human emotion on markets. Honma traded on the Dojima Rice Exchange of Osaka, considered to be the first formal futures exchange in history.

Who Discovered the Idea of Candlestick Patterns?Īccording to, it is commonly believed that candlestick charts were invented by a Japanese rice futures trader from the 18th century.

That’s why you’re here, right? To learn to navigate the murky waters of the market? And with enough repetition, enough practice, you just might find yourself a decent chart reader. They’re like little road signs on crowded streets. They help us to decipher the patterns of the market. This is where candlestick patterns come in handy. More importantly, the right opportunities can create profits. And the right probabilities create opportunities. Especially when you’re just getting started.īut be of good cheer! There is a method to the madness. There appears no rhyme or reason, and no end to the amount of price and volume data being thrown your way. We believe the best way to do this is by understanding candlestick patterns.įor newer traders, even reading candlestick charts can seem like an insurmountable learning curve. But unless you are just a gambler, you need some form of data to make informed decisions. In fact, there is no right or wrong way to read a chart. No doubt, there are countless ways to make money in the stock market.

Candlestick charting basics steve nison