The Japanese Candlestick Chart History started in 1710 with first futures contract traded in the form of a rice coupon thereby becoming the first futures contract ever traded. Currency attempt of that time had failed, so these rice coupons became the medium of exchange in Japan.
Today the US dollar is considered the medium of exchange for the world because all commodities are priced in US Dollars, thereby making it the most liquid commodity in the world.
With the first futures contract traded in Japan, came the first futures exchange of record. As with any market over time its primary purpose shifted to a more speculative nature creating a new type of rice coupon trader in Japan, the rice coupon speculator. By 1749 the rice market was trading at nearly 4 times the actual available crop in Japan.
The Japanese Candlestick was created by one of these rice speculators named Munehisa Homma. Munehisa Homma came from an extremely wealthy family in Japan. Upon the death of his father, Munehisa took over managing his families’ assets. From his studies in the rice markets he created a method of trading in the Japanese rice exchange that was so successful that he became a legend among other traders.
Munehisa Homma wrote two books, Sakata Senho and Soda Sani No Den. From these two books the Japanese Candlestick chart was derived. Any method pioneered by one of the most successful commodity traders ever must be taken seriously.
Learn more about Japanese Candlestick Charts:
How a Japanese Candlestick chart is constructed
Japanese Candlestick Chart Patterns and how to use them