Registered: Feb 2010
08-13-12 12:14 PM
Quote from learner2007:
Just as a point of interest, those who invented candlestick charts don't use them anymore. Even though most printed charts and also those on the local (Japan) sites are candlesticks, those who still use candlestick analysis here in Japan are almost nowhere to be found. If you go to a Japanese bookstore, there might be one 'dusty' book on candlestick analysis still on the shelf. Again, this is just FYI. If you like them and can make money with them, that's fine.
Japanese Candlesticks was invented a few hundred years ago. Move info @ http://en.wikipedia.org/wiki/Homma_Munehisa
Therefore, of course they don't use them anymore...the inventors are all dead and if one of them was still alive, he'll be the oldest person to ever lived.
Seriously, I know you've implied that there aren't any Japanese traders that use Japanese Candlestick Analysis. That's false. I personally know 1 institutional trader in Japan and 5 retail traders in Japan that uses Japanese Candlestick Analysis. Yet, its just a tool to them as it was originally designed and its not their primary trade method nor their primary analysis as it was originally intended for use.
The difference is that there are more traders in the Western hemisphere that used Japanese Candlestick Analysis in comparison to those in Asia. The primary reason is that Japanese Candlestick Analysis was (still is) heavily promoted in the west by folks like Steve Nison whereas it has very little promotion in in Asia itself even though it originated in Asia. There just wasn't a market in Asia like it was in the west because the marketing was primarily aimed at retail traders. The secondary reason is that it was initially promoted in the west as a primary trade method whereas in Asia its used as a secondary analysis to support market context as it was originally designed.
Independent day trading is much more popular in the west than it is in Asia as a whole or Japan itself. Remember those day trading commercials in the 1990's in the United States...I don't remember commercials as such in Japan nor heard of any in Japan from my Japanese friends during the same time period.
Last of all, in my opinion, some of the best testing of Japanese Candlestick Analysis have been performed by academia of Japan. The comparison to academia in the west is at least the Japanese understand its an analysis whereas the west applies it as a trade method.
As soon as someone understands the difference between Analysis versus Trade Method...they'll apply Japanese Candlestick Analysis as it was originally intended along with seeing its usefulness.
P.S. I myself still use the phrase "trade signal" or "trade method" but have to remind myself here and there it was not originally designed as such.