Japanese candlestick charts are said to be developed in the 18th Century by Munehisa Homma, a legendary rice trader. It is said he executed over 100 consecutive sucessful trades! In 1755 he wrote the first book on market psychology, The Fountain of Gold - The Three Monkey Record of Money. In this book he notes traders emotions have a significant influence on prices, and when all are bearish there is cause for prices to rise (and vice versa). This understanding is a key component of Elliott Wave trading today.

Identifying candlestick reversal patterns can be used in conjunction with Elliott Wave Analysis to give additional confirmation that a wave pattern is valid.

This guide is designed to be printed to A4 size to provide a quick reference to 14 candlestick patterns, with bullish or bearish indications for each.