The Art of Japanese Candlestick Charting By Brett Fogle Want to see more pro tips even better than Candlesticks? Marubozu forex cargo The Art of Japanese Candlestick Charting 1 Foreword 4 Candlestick Charting History 6 Significance of Candlestick Charting: Why is it Popular Among Traders? Interpreting Candlestick Patterns Bullish Patterns Bearish Patterns Engulfing Bearish Doji Tweezers Patterns Extended pattern groups Techniques: Simple Steps for Better Returns What Candlesticks don t reveal Concluding Remarks FAQ What is the origin of candlestick charting technique?
Foreword There is a Japanese saying consult the market about the market which means that when observing the market, we should pay close attention to the market movement itself, rather than observing the international affairs and economic policies that may or may not affect the market. More than 200 years ago, the Japanese were using a unique style of technical analysis in the rice market that evolved into the candlestick technique currently used in Japan and elsewhere. Candlesticks can be used to further the investor’s understanding of dozens of frequently reoccurring market scenarios. Combining candlestick charting techniques with traditional technical approaches creates a powerful formula for the savvy investor seeking to navigate these uncertain financial times. Candlestick Charting History Candlesticks have a rich history that extends far beyond their relatively short period of popularity among today’s traders. The Japanese are credited for developing the candlestick techniques still in use today. These techniques originated in the technical charting methods used as far back as the 1600 s.
Sadly, the bakufu grew fearful of Keian s power and influence. They charged him with living a life of luxury beyond his social rank of merchant, and forced him to part with his fortune. With Keian out of the way, several competing rice merchants attempted to corner the rice market. He discovered that although there was a link between price and the supply and demand of rice, the markets were strongly influenced by the emotions of the traders. He understood that when emotions played into the equation, a vast difference between the value and the price of rice occurred. His findings are known as the “Sakata Rules”, named after the Honma family s hometown.