<s>
A	O
candlestick	B-Application
chart	I-Application
(	O
also	O
called	O
Japanese	B-Application
candlestick	I-Application
chart	I-Application
or	O
K-line	O
)	O
is	O
a	O
style	O
of	O
financial	O
chart	O
used	O
to	O
describe	O
price	O
movements	O
of	O
a	O
security	O
,	O
derivative	O
,	O
or	O
currency	O
.	O
</s>
<s>
Candlestick	B-Application
charts	I-Application
are	O
most	O
often	O
used	O
in	O
technical	O
analysis	O
of	O
equity	O
and	O
currency	O
price	O
patterns	O
.	O
</s>
<s>
They	O
are	O
visually	O
similar	O
to	O
box	B-Application
plots	I-Application
,	O
though	O
box	B-Application
plots	I-Application
show	O
different	O
information	O
.	O
</s>
<s>
Candlestick	B-Application
charts	I-Application
are	O
thought	O
to	O
have	O
been	O
developed	O
in	O
the	O
18th	O
century	O
by	O
Munehisa	O
Homma	O
,	O
a	O
Japanese	O
rice	O
trader	O
.	O
</s>
<s>
They	O
were	O
introduced	O
to	O
the	O
Western	O
world	O
by	O
Steve	O
Nison	O
in	O
his	O
book	O
Japanese	B-Application
Candlestick	I-Application
Charting	O
Techniques	O
,	O
first	O
published	O
in	O
1991	O
.	O
</s>
<s>
However	O
,	O
based	O
on	O
my	O
research	O
,	O
it	O
is	O
unlikely	O
that	O
Homma	O
used	O
candle	B-Application
charts	I-Application
.	O
</s>
<s>
As	O
will	O
be	O
seen	O
later	O
,	O
when	O
I	O
discuss	O
the	O
evolution	O
of	O
the	O
candle	B-Application
charts	I-Application
,	O
it	O
was	O
more	O
likely	O
that	O
candle	B-Application
charts	I-Application
were	O
developed	O
in	O
the	O
early	O
part	O
of	O
the	O
Meiji	O
period	O
in	O
Japan	O
(	O
in	O
the	O
late	O
1800s	O
)	O
.	O
</s>
<s>
In	O
modern	O
charting	O
software	O
,	O
volume	O
can	O
be	O
incorporated	O
into	O
candlestick	B-Application
charts	I-Application
by	O
increasing	O
or	O
decreasing	O
candlesticks	O
width	O
according	O
to	O
the	O
relative	O
volume	O
for	O
a	O
given	O
time	O
period	O
.	O
</s>
<s>
Candlestick	B-Application
charts	I-Application
are	O
a	O
visual	O
aid	O
for	O
decision	O
making	O
in	O
stock	O
,	O
foreign	O
exchange	O
,	O
commodity	O
,	O
and	O
option	O
trading	O
.	O
</s>
<s>
Candlestick	B-Application
charts	I-Application
serve	O
as	O
a	O
cornerstone	O
of	O
technical	O
analysis	O
.	O
</s>
<s>
A	O
candlestick	O
pattern	O
is	O
a	O
particular	O
sequence	O
of	O
candlesticks	O
on	O
a	O
candlestick	B-Application
chart	I-Application
,	O
which	O
is	O
mainly	O
used	O
to	O
identify	O
trends	O
.	O
</s>
<s>
Candlestick	B-Application
chart	I-Application
are	O
similar	O
to	O
box	B-Application
plots	I-Application
.	O
</s>
