What is a Candlestick Chart? Before diving into the patterns themselves, it’s essential to understand the chart they live on. A candlestick chart is a type of financial chart used to describe price movements of a security, derivative, or currency. Its origins trace back to 18th-century Japan, where a legendary rice trader named Munehisa Homma developed the technique to track the price of rice. Homma realized that market price was influenced not just by supply and demand, but also by the emotions of traders. His candlestick method captured this human…
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