Read the emotion in the candle and you will master the market.
Curious fact: This system was invented by rice merchants in Japan in the 18th century to predict market prices. It is a technique with a lot of history!
The Human Factor: He realized that the price not only depended on the harvest (supply/demand) but also on the emotions of the merchants (fear and greed).
The Information Network: It is said that he established a network of men every 6 km between Sakata and Osaka to send signals with flags and smoke, thus knowing the price of rice in almost real-time. He was the Bloomberg of the 1700s!
Legendary Wealth: He had a streak of 100 consecutive winning trades and became a financial advisor to the Japanese government of the time.
"Did you know that technical analysis was born in an 18th-century rice market? 🌾"
The Key Concept: "Candles not only show numbers; they show emotions. The green color is the euphoria of bulls; the red is the fear or profit-taking of bears."
The Master Fact: "Munehisa Homma (the father of candles) said that to win in the market, one must first understand the 'Yin' and 'Yang' of price movement. The balance between supply and demand."
$PEPE (Pure Euphoria): Pepe is the modern example of what Homma called the 'emotional market'. It doesn't rise because of technology; it rises because people get excited (euphoria). In Pepe's charts, you will see giant green candles with no wicks on top: that's the brute force of buyers who don't want to let go.
$POL (Polygon - The Evolution): It was previously called Matic. Here, euphoria comes from migration and technology. Since it has just changed its name and improved its network, investors are 'excited' waiting for it to be the new engine of payments. Homma would say that there is a 'tide change' in sentiment here.
**$BTTC (BitTorrent - The Sleeping Giant): This coin has very interesting 'wicks'.
$BTTC tends to move when the Tron market or the storage ecosystem heats up. It's a coin where euphoria takes time to arrive, but when it does, the candles explode.
He discovered that the red or green color is not just price; it's psychology. For example, in $PEPE, we see people's euphoria reflected in long green candles. In $POL, we see the hope of a new network. Munehisa Homma's secret was simple: read the emotion in the candle, and you will master the market.
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