Candlestick Patterns

Candlestick charts, first appearing in the early 1800s, are believed to have been developed by rice trader Homma from Sakata, Japan.  Candlestick charts display market information such as open, close, high, and low but also show emotional volatility within the trading period. Candlestick patterns are a financial technical analysis tool that graphically depicts daily price movement information for derivatives, securities, and currencies. These patterns typically represent one day of price movement, with approximately 20 trading days with 20 patterns within a month. Candlestick patterns help analysts predict future market price movements based on historical price patterns, providing a comprehensive view of market trends.