Candlesticks For Support And Resistance (3)

Real-body support levels would work in a similar, but opposite, manner. Note how the second day's action takes prices above that resistance, even to a new high, but the market rallies above real-body resistance, only to fall back. The real-body high from the first day provides the initial resistance point. An example of real-body highs and lows are on bar charts, an accumulation of real-body resistance levels can be seen in Figure 2. Much like highs and lows are on bar charts, an accumulation of real-body highs and lows are on bar charts, an accumulation of real-body highs or lows at a given level is significant. Candlestick real bodies, however, may turn out to be better for this task. The shadows of a candle - which give the appearance of being wicks - are drawn in the expected direction of prices.

In effect, there must be a real-body penetration of the support or resistance point before we can consider the action to be significant. The last candlestick is what would be considered a breakout. Real-body support levels would work in a similar, but opposite, manner. Note how the second day's action takes prices above that resistance, even to a new high, but the market rallies above real-body resistance, only to fall back. The real-body high from the first day provides the initial resistance point. Here's an example of real-body resistance levels. CANDLESTICK REAL-BODY RESISTANCE.