"In character, in manners, in style, in all things, the supreme excellence is simplicity."
Candlestick Patterns were created centuries ago, around about the 18th century by Munehisa Homma. He was a rice trader on the financial markets. People began to take notice of Homma after he successfully executed over one hundred winning trades in a row thanks to Candlestick Patterns.
When you read the names of many of the Candlestick Patterns, you’ll notice a lot of military references such as ‘three white soldiers’. This is because Candlestick Patterns began to be developed during war years in Japan.
Another naming convention that has suck are the terms ‘white’ and ‘black’. For example ‘three white soldiers’ and ‘three black crows’.
The terms white and black refer back to the days when computer screens (and before that paper and pen) were not able to show Candlestick Patterns in color.
Candlestick Patterns in modern trading are widely used because of the amount of information they can display in a single bar.
They also appear much larger on a computer screen than the alternative OHLC bars, which can sometimes be difficult to read when you are zoomed out of a chart.
While they have been used for hundreds of years in Japan, it has only been over the last few decades that the western economy and the United States has made use of Candlestick Patterns.
Candlestick Patterns, no doubt will be neglected by future generations. Those who will gloss over the importance and the power of Candlestick Patterns. But like Homma, we will just have to lead by example, use Candlestick Patterns to our advantage and then maybe others will follow when... Read more...