The history of Japanese candles dates back to the 17th century in Japan. Back then, rice traders used these candles to analyze market prices and predict future trends.

These candles were different from traditional candles in that they had a long, narrow body with a wick at one end. They were made of tallow wax, a substance derived from animal fat, which gave them great durability and a low melting point.

The use of Japanese candles was popularized by a man named Munehisa Homma, a rice merchant and samurai. Homma developed a price analysis technique using these candles, which became known as "candlestick charting".

Homma observed that rice prices were influenced by emotions and human behavior, and that this could be reflected in candlestick patterns. For example, if the opening price was lower than the closing price, a bullish candlestick would form, representing positive sentiment in the market. On the other hand, if the opening price was higher than the closing price, a bearish candlestick was formed representing negative sentiment.

These candle patterns allowed traders to predict the future direction of the market and make informed decisions about their investments. Over time, candlestick analysis became a widely used tool in financial trading in Japan and subsequently spread throughout the world.

Today, Japanese candlesticks are an integral part of technical analysis in financial markets. Its popularity is due to its ability to provide clear and concise visual information about price movements, helping traders make better decisions.

In summary, the history of Japanese candles dates back to the 17th century in Japan, where they were used by rice traders to analyze market prices. Thanks to its effectiveness in predicting trends, candlestick analysis became...