Japanese candlesticks are one of the most popular types of forecasting on the Forex market, as they are not only a method of analysis, and a separate graph. Big bonus Japanese candlestick is easy to understand, which to this day is a fundamental factor during trading.
Japanese candlesticks has gained popularity after in the eighties Steve Nisson published the book “Japanese candlesticks. Graphical analysis of financial markets”. But Neeson only compiled the test that originated much earlier. The first candlesticks were created by a Japanese merchant and a businessman Munehisa Homma. He was the founder of interval graph used to show changes of stock quotes of stocks, prices of raw materials etc.
Munehisa Homma was born in 1724 in the port city of Sakata, which was one of the centres of rice trade. He, Homma was born in a family of big capitalists who owned large-scale rice plantations and traded in rice.
Despite the fact that Morehis was the youngest son due to his intelligence he was able to circumvent the ancient traditions and become a Manager of the family business.
Given the fact that society is rapidly developed, Sakata opened the world's first rice exchange on which Homma traded for several years. However, after he moved to Osaka and Edo where he could earn a large fortune, one hundred and concluding successful deals in a row. Eventually, when the exchange trade of rice became legal, Munehisa was invited to work as financial Advisor and was granted the title of samurai.
Munehisa should learn that he not only wanted to make money, but to understand the psychology and the basic principles of trade. To do this, he collected history of the rice exchange in Osaka and analyzed not only the rates but also the factors that influenced their change. Thanks to research and clear analysis, Homma was able to create such indicator, as “Japanese candles”.
To obtain operational information about quotes on rice Homma placed between the estate and the exchange of heralds, which signaled the flags of each change. As a result, he quickly reacted to the exchange events, which allowed him to achieve unprecedented results is to make a profit on a hundred deals in a row. His life he spent in prosperity and wealth, leaving modern traders interesting system of trade on Japanese candlesticks.