Candlestick charts are a popular tool used by traders to analyze price movements and make trading decisions. They have a rich history that dates back to 18th century Japan, where they were used by rice traders to analyze price movements in the rice market. Here is a brief history of the origins and evolution of candlestick charts:

Origins:

Candlestick charts were first developed by a Japanese rice trader named Munehisa Homma in the 18th century. Homma used these charts to analyze price movements in the rice market and to make trading decisions. He observed that price movements were influenced by emotions such as fear and greed, and that these emotions could be reflected in the price patterns.

Evolution:

Candlestick charts were not widely used outside of Japan until the 1980s, when they were introduced to the Western world by Steve Nison. Nison was a commodities trader who discovered candlestick charts during a trip to Japan. He was intrigued by their use in analyzing price movements and began studying them in depth.

Nison introduced candlestick charts to the Western world through his book, "Japanese Candlestick Charting Techniques." The book became a best-seller and introduced Western traders to the concepts of candlestick charts and their use in technical analysis.

Since then, candlestick charts have become a popular tool used by traders around the world. They are now widely used in all financial markets, including stocks, futures, options, and forex. Candlestick charts have also evolved to include a wide range of patterns and indicators that can be used to analyze price movements and make trading decisions.

Conclusion:

Candlestick charts have a rich history that dates back to 18th century Japan. They were first developed by a rice trader named Munehisa Homma and were used to analyze price movements in the rice market. Candlestick charts were introduced to the Western world by Steve Nison in the 1980s and have since become a popular tool used by traders around the world. Candlestick charts have evolved to include a wide range of patterns and indicators that can be used to analyze price movements and make trading decisions.

Looking to learn about forex? Take our crash courses at our Forex University. If you’re looking to setup a demo trading account then click here. Finally, if you’re looking for Forex Signals, Forex Portugal provides free & premium signals on-demand.