Munehisa Homma

From Wikipedia, the free encyclopedia

Munehisa Homma (1724-1803), alias Sakata also known as the God of the markets is considered to be the father of Candlestick charts. Munehisa was a legendary rice trader and is said to have made a huge fortune using candlestick chart analysis.

Munehisa was born to a wealthy rice farmer and began trading the rice futures markets in the local Sakata market before he made his way to Osaka and Edo (todays Tokyo). Munehisa is said to have executed 100 consecutive winning trades. Munehisa studied the emotions of traders in the rice market by analyzing historical prices over the previous decade.

Munehisa was a pioneer in recognizing that market movement is simply a reflection of masse human psychology (See also: Dow Theory). In 1775, Munehisa wrote "San-en Kinsen Hiroku" (The Fountain of Gold - The three monkey Record of Money), wich is a book on Technical analysis.

Munehisa also became a financial consultant to the Japanese government. Before he died in 1803, Munehisa Homma wrote two other books about his technical analysis method: "Sakata Senho" and "Soba Sani No Den". Munehisa Homma's books form the basis of the actual Candlestick charts.