The Japanese were the first to use technical analysis to trade one of the world's first rice futures markets in the 1600s. A Japanese man by the name of Homma who traded the futures markets in the 1700s discovered that although there was link between supply and demand of the rice, the markets were also strongly influenced by the emotions of the traders.
Homma realized that he could benefit from understanding the emotions to help predict the future prices. He understood that there could be a vast difference between value and price of rice.
This difference between value and price is as valid today with stocks, as it was with rice in Japan centuries ago.
The principles established by Homma in measuring market emotions in a stock are the basis for the Candlestick Chart analysis, which we will present in this seminar.
One profitable Free Trading System for forex based is based around a candlestick pattern called an "engulfing pattern". It is also know as an "outside day" in western charting.
Tags: forex, trading, scalping, technical analysis
Day Trading technical analysis - candlestick chart course
1 comment:
Wikipedia does a pretty good job of explaining the basic elements of candlestick trading. Check it out.
http://en.wikipedia.org/wiki/Candlestick_chart
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