faical93
05-28-2017, 21:25
When a chartist looks at a bar graph, accumulations of highs and lows are often seen as key market levels
through these points signals important changes in the expected direction of prices. Candlestick real bodies, however,
may turn out to be better for this task. Much like highs and lows are on bar charts, an accumulation of real-body
highs or lows at a given level is significant.
An example of real-body resistance levels can be seen in Figure 2. The real-body high from the first day provides the
initial resistance point. Note how the second day's action takes prices above that resistance, even to a new high, but
the market ends lower on the day. The situation is similar after the fourth day. Twice the market rallies above
real-body resistance, only to fall back. Real-body support levels would work in a similar, but opposite, manner
through these points signals important changes in the expected direction of prices. Candlestick real bodies, however,
may turn out to be better for this task. Much like highs and lows are on bar charts, an accumulation of real-body
highs or lows at a given level is significant.
An example of real-body resistance levels can be seen in Figure 2. The real-body high from the first day provides the
initial resistance point. Note how the second day's action takes prices above that resistance, even to a new high, but
the market ends lower on the day. The situation is similar after the fourth day. Twice the market rallies above
real-body resistance, only to fall back. Real-body support levels would work in a similar, but opposite, manner