The Basics of Japanese Candlesticks Trading

Candlesticks are a technical analysis tool that traders use to chart and analyze stock price movements. Munehisa Homma, a Japanese rice merchant, originated the concept of candlestick charting. During ordinary trading, Homma noticed that the rice market was influenced by traders' emotions while still considering the effect of demand and supply on rice prices. Candlestick charts provide more detailed and precise price movement information than bar charts. They provide a graphical representation of the supply and demand that drives price action in each period. Candlestick and bar charts give traders the same information but distinct graphical representations. Candlesticks are more visually appealing, providing traders with a better pictorial representation of market action. They also graphically depict the supply and demand forces that contribute to the price movement of each period. Candlesticks form patterns that traders use to analyze the price movement. Please comment and subscribe ‪@InvestorsTradingAcademy‬