Core Concept - The article discusses the history and significance of candlestick charts, originally developed in 18th century Japan by a rice merchant named Homma Sōkyū to track rice price fluctuations [1][3]. Group 1: Candlestick Chart Basics - Candlestick charts consist of three main components: the body, shadows, and color [32][33]. - Each candlestick represents four data points: opening price, closing price, highest price, and lowest price for a specific time period [31][32]. - The body of the candlestick is formed by connecting the opening and closing prices, while the shadows represent the highest and lowest prices during that period [33]. Group 2: Candlestick Patterns - Common candlestick patterns include the "big bullish line" indicating strong buying pressure and the "big bearish line" indicating strong selling pressure [18][21]. - The "doji" pattern, where the opening and closing prices are nearly equal, suggests market indecision and can signal potential reversals depending on its position [23][29]. Group 3: Interpretation of Candlestick Charts - The size of the body indicates the strength of buyers or sellers; larger bodies suggest stronger market sentiment [36]. - The length of the shadows reflects price volatility; longer shadows indicate greater price fluctuations and uncertainty [37]. - Trading volume is a critical factor; increasing volume with price rises suggests a stronger trend, while rising prices with decreasing volume may indicate a weakening trend [38][39].