CandleStick Charting
By SmallStocks on Aug 3, 2008 in Technical Analysis
Candlestick Charting is one of the most ancient forms of charting known to man, originating in Japan in the 17th Century through the development of the rice market in Osaka. Munehisa (Sohku) Honma is generally attributed to have developed the candlestick charting system and his analysis of these charts allowed him to amass a fortune in the one of the worlds first futures markets.
Steve Nison is attributed to bringing CandleStick Charting into the Western world, and since his booklet titled ‘Understanding Japanese Candle Charts’ written for Merrill Lynch in 1990, candlestick charting has exploded into modern western society. Nison later expanded his original booklet in another book entitled ‘Japanese Candlestick Charts’. In this book he summaries the main advantages of using Candlestick Charts including:
- Being able to visually draw relationships between stock data
- Providing stronger insights into price behaviour and methods which are not directly apparent in other forms of stock charting
- The advantages that are provided in being able to see trading movements more easily in the short term
