Forex: History of Candlestick in forex
candlestick is one of he technical tools used in effective trading of forex and it is widely accepted in the world today as the key technique in forex trading.
Candlestick have been around alot longer than anything similar in the western world. The Japanese were the first country in the world to start observing this chart as far back as 17th century where as the earliest know chart in the US appeared in the late 19th century, this means it was know & being observed in the late 19th century.
In the early 1700s a well known rice trader in Japan named Munelisa Homma (AKA Sokyu Honma)widely credited as begin one of the early exponents of tracking price action. So he understands l basic supply and demand dynamics, but also identify the fact that emotion played a part on the setting of price. He wanted to track emotion of the market player and this work became the basis of Candlestick analysis.
My view as the write of this article is that this Man could have been affected with the emotion played by the market player of that year because agriculture commodity is the most traded, So he came with is own techniques to beat and out run the key market player view of emotions, bringing market price to favour or suit their selfish interest, so being one of the well known rice trade and part of the market stakeholder View pictures in App save up to 80% data. , the key man in the world of rice in it's prices action.With his view and insight that gave birth to candle stick analysis, He was extremely well respected to the point of being promoted to Samurai statues.
While this man technical tools is been accepted in the Japanese economy the Japanese did an extremely good job keeping this Candlestick analysis quiet from the western world right up to the 1980s when there is a wide cross-pollination of Banks & Financial institutions around the world, this is when the westerners suddenly got the wind of these mystical chart after about 280yrs from the year of establishment, obviously this was also about time that the charting in general suddenly became alot easier, due to the widespread use of the PC. the late 1980s several western analysts became interested in candlestick. In UK Micheal Feeny, who was then the head of (Technical Analyst)TA I'm London Sumitomo, began using candlestick in his daily work and started introducing the ideal to London professionals.
In December 1989 edition of futures magazine Steve Nison,who was a technical analysts at Merrill Lynch in New York,produce a paper that showed a series of candlestick reversal pattern and explained their predictive power,he went onto write a book on the subject thanks to Messrs Feeny & Nison.
Since the Candlestick have gained in popularity by that year and these day seen to be the standard template that most analysts work from.
The hypothesis of this Japanese man become the world know Technical Analysis in trading one the most liquidity trade in the world.
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