History of Candle Charts
Technique originally devised by 18th Century Japanese Rice Traders
Underlying theory based upon market positioning/psychology
Commonly used since late 19th Century in the Far East
Only recently adopted in Western countries, since early 1990s
Since then the interest in and use of this method of analyzing financial and commodity markets has increased dramatically
A Candlestick
Can be used to display market movement for any period providing the open, close, high and low prices of the period are available.
Market “UP’ Day
Market closes higher than it opens
Market “DOWN” Day
Market closes lower than it opens
Market “NO-CHANGE” Day
Market closes where it opens
The Pattern
Pattern Definition
Market opens and closes [...]
