Candlestick patterns were invented in 18th-century Japan by Munehisa Homma, a legendary rice trader from Sakata.

Candlestick patterns were invented in 18th-century Japan by Munehisa Homma, a legendary rice trader from Sakata. Homma used price charts while trading rice to study market psychology. He discovered that emotions like fear and greed repeat in price action. From this, he developed what we now call Japanese candlestick charts—showing open, high, low, close in a visual way. His methods later reached the modern world and became a core part of technical analysis in stocks, commodities, forex, and crypto. In short: Munehisa Homma is considered the inventor of candlestick patterns.