Japanese Candlestick, the Key to Trading Success
All or most of the capital market businessmen such as forex, stocks, or options must be familiar with Japanese wax charts or better known as English candlesticks. Called Japanese Candlestick because its shape resembles another stem and was first used in Japan.
Before popularized by Steve Nison, Japanese Candlestick was a method developed by a man named Munehisa Honma. Honma itself is an agent of a rice commodity trader in the 18th century in Japan. He is also one of the most famous Japanese people in predicting future price movements.
Steve Nison (Mr. Candlesticks)
Honma’s journey in the world of commodities began when he replaced the position of his deceased father as manager of his family’s assets. Honma starts recording the price movements of rice on a paper. He draws price patterns on rice parchment paper, records the initial or opening price, the top or highest price, the lowest price, and the closing price every day. From there Honma saw repetitive patterns and signals on the price beams that she drew and gave them names as in the name of the Japanese candlestick chart pattern that we know today.
In 1987 Steve Nison invented this candlestick chart when he met a Japanese broker, and he began introducing it to the western world through his book “Japanese Candlestick Charting Techniques”. And to date candlestick charts have been used widely throughout the world and are used by many traders.