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Candles and Support and Resistance Lines

Candles and Support and Resistance Lines

2010-06-16 21:07:00
Richard Krivo, Trading Instructor
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 Instructor’s Response:

 
The main rule is that the lines can pass through wicks but not through the bodies. When I draw them I try to have as many points of contact between price and the lines themselves as possible without the lines passthing through a candle body.  This may include touching some wicks as well as the bodies of the candles.
 
Take a look at the chart below for some examples...
 
chart 6 16 10

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