Homma Munehisa


Munehisa Honma was a rice merchant from Sakata, Japan who traded in the Dojima Rice market in Osaka during the Tokugawa Shogunate. He is sometimes considered to be the father of the candlestick chart.
Around 1710, a futures market emerged for rice, which had previously been traded exclusively on the spot. This system used coupons, promising delivery of rice at a future time. From this, a secondary market of coupon trading emerged in which Munehisa flourished. Stories claim that he established a personal network of men about every 6 km between Sakata and Osaka to communicate market prices.
In 1755, he wrote, the first book on market psychology. In this, he claims that the psychological aspect of the market is critical to trading success and that traders' emotions have a significant influence on rice prices. He notes that recognizing this can enable one to take a position against the market: "when all are bearish, there is cause for prices to rise" .
He describes the rotation of Yang, and Yin and claims that within each type of market is an instance of the other type. He appears to have used weather and market volume as well as price in adopting trading positions.
Some sources claim he wrote two other books and