Originally Posted by Bogdan G. Click here for the full review
Developed by Japanese rice traders in the 18th
century, candlesticks have been used by them ever since and relatively recent they started to receive credit in the Western trading world. Today almost all the charts we see use Japanese candlesticks. Their predictive value is probably the reason for their longevity and their wide use. As we know, price is driven by people and people are driven by emotions; with the help of Japanese candlesticks we can take a peek inside the mind of the majority and gauge the market sentiment.