Category:Candlestick Analysis

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 Black or white, big or small, light or dark.
In the battle between sunrise and nightfall,
there is never a winner.
One prevails, one succumbs.
The role exchanges endlessly.

This particular form of graphical representation of prices is able to perfectly measure the struggle between buyers and sellers, and even closer to our purposes, the exchange rate volatility. It is a trading methodology that needs to be known as well as the history of the candlesticks’ origins, even if only for curiosity or general culture.

It is commonly believed that the candlesticks patterns found their origins between the seventeenth and eighteenth century, in Japan, where this technique was used as a speculation operational tool when trading rice in the forward contracts market.

Some merchants began using these special techniques to analyze the trend of contracts prices in the rice market, two centuries before Dow. Among the first people to study past prices for managing the future price using candlesticks, was legendary Munehisa Homma (1724-1803), who built a fortune trading on the rice market.


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