MarilynKinney.net

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Candlestick Newsletter

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Excerpted from the website:

The Beginning
The method of predicting price movements by looking at the previous day's movement was first developed by Sokyu Homma. This method was later termed the "Sakata Constitution". In the 1700's, Homma lived near the "shonai" (rice) distribution center where he began trading at his local rice exchange. He was far more successful than others. But he kept his ideas secret. He was eventually promoted to the "bushi" (samurai) level and moved to Edo where he began to trade at the Edo (Tokyo) Regional Exchange. He used his secret methods to amass a huge fortune. Homma probably charted as a matter of expediency inasmuch as he found it necessary to see the highest and lowest price movements at a glance. If someone asked him how the rice market was doing he didn't need all the information gathered from various rice paddies.
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