The history of candlesticks dates back to the 1700s in Japan. Historical records show that between 1500 and 1600, Japan suffered from constant warfare (Sengoku Jidai). Eventually, three military generals—Nobunaga Oda, Hideyoshi Toyotomi, and Ieyasu Tokugawa—unified Japan.

General Hideyoshi Toyotomi developed Osaka into Japan's economic capital. By 1700, the "Dojima Rice Exchange" in Osaka became the world's first futures market.

For over 200 years, this powerful technical analysis method was kept a secret within Japan. It remained virtually unknown to the rest of the world until the late 20th century.

In 1987, American technical analyst Steve Nison discovered candlestick charts. Intrigued by the visual representation of price action, Nison spent over three years rigorously studying the technique.

Today, candlestick charting is the standard for most trading platforms worldwide, proving its effectiveness across all markets, including stocks, forex, and cryptocurrencies.

Financial decisions are often driven by emotions—primarily Fear and Greed. Candlestick charts reveal the psychological state of the market.

• Green (Bullish): Buyers were aggressive. Represents greed or confidence.
• Red (Bearish): Sellers were in control. Represents fear or panic.
• Shadows (Wicks): Represent rejection. A long shadow indicates that one side pushed the price, but the other side pushed back.