leader of the Osaka rice merchants. In four days Homma had become the prince of rice traders.

His candlestick charts reflected everything that was known about price; the open, high, low and close. The relationship of the close to the opening price would determine whether the candlestick was hollow (price moved up from the open to the close), or filled (usually black or red). Homma gave each of these patterns its own name; Long days, Short days, White Marubozu , Black Marubozu, Spinning tops, Stars, Rain drops, Dark Cloud Cover, Evening Star, Doji's, Three Black Crows, Dragonfly Doji, Hanging Man and others. Each had a specific meaning to Homma.

After dominating the rice market of Osaka, Homma the world's first recognised chartist went on to conquer the Muneisha trade inthe market of Edo where he was reported to have made 100 consecutive winning trades! His trading activity in the rice market makes Gann look positively ordinary.

Homma's fame spread throughout Japan. He was considered the god of markets. In due course he became a prominent financial adviser to the Government of the day and was raised to the rank of Samurai! No greater honour could be bestowed on a Japanese citizen.

His books "Sakata Shenso" and "Soba Sani No Den" increased his fame and the meanings he ascribed to his patterns became known the "Sakata Rules." source dapay.com. The Sakata Rules are the basis of modern candlestick charting.

The Dojima Rice Exchange was formally institutionalized in the late 1600's. Merchants graded rice and negotiated their fair market value. After 1710,