What is Candlestick Pattern
Candlestick was first used in the 17th century in Japan, to trade rice.
The well known rice trader Homma developed the candlestick charting and might be the first to use Technical Analysis to do trading.
Technical Analysis is today, being used by millions of traders, banks, financial institutes, fonds etc.
Homma wanted to know “What” caused the price to fall or rice, so by looking at start price, low price, high price and closing price of rice every day, he found some psycological patterns in the daily prices – also known as “Price Action”
At that time in Japan, it was much earsier to discover but the structure and syntax of the patterns is the same.
Today we have much more patterns and new patterns are still added to the list.