In the 1700s, Homma, from Japan used this method to predict the price, the supply and demand of rice. Those days the prices of rice were varying much with the emotions of the people.
These candlesticks indicate four points in trading and they are the open, close, high, and low value of a particular share on a particular day. One Candlestick will give the history of one day. The candlestick of each day will be colored based on its variation. When the candlestick is in black color means the close was lower than the open. If the body is empty means the close was higher than the open. A candlestick that is showing a candle down maybe in red color in some cases. Upwards may be represented by green instead of open,
A candlestick pattern will be of two types. Bullish patterns are one which indicates that the price may increase. The second pattern is known as bearish patterns and they indicate that the price may come down.