5 - CANDLESTICK CHART CONSTRUCTION

The highest price and the lowest price is connected with a vertical line between the opening price and the closing price (see fig. 6).

Candlestick chart is powerful tool for giving entry and exit signals.

Every pattern has it's own name and a story to tell between the war of demand and supply.

A short story of candlestick chart:

It was founded by the Japanese, called Munehisa Homma during rice trading in the early 16th century.

He dominated the market on those days.

Then, in 1990, candlestick chart was introduced by Steve Nison to the Western.

fig. 6