Japanese Candlesticks: An Old Way For A New Market.
Over the span of many years, investors and traders have charted the buying and selling prices of their respective stocks and commodities in a variety of ways.
One of the most unique, however, is a method developed over 150 years ago by a Japanese rice trader named Homma.
Homma’s method has since become known as the japanese candlestick method and is gaining ground as one of the most accurate methods of determining true market conditions.
In general terms, the main part of the candlestick accounts the opening price for aspecific stock or commodity. While the lines extending above and below represent the actual closing price.