Financial Technical Analysis Crypto Narrative Chapter 3 Candle Stick Patterns

The candle stick chart was introduced by Steve Nison in his book, Japanese Candlestick Charting Techniques developed by Munehisa Homma, a rice merchant from Sakata, Japan who traded in the Ojima Rice market in Osaka during the Tokugawa Shogunate. It really looks like a candle where the wick is the high, the wax is the open/close, and the handle is the low. Today, candle stick chart is useful to efficiently see market behaviors and predict future movements.

A bullish finished candle is usually colored green or hollow. It is a summary of a price movement that starts/opens with a lower price and ends/closes with a higher price. Thus, a bullish candle means that the price went upward in that certain period.