support and resistance questions?

[Darren Stott]

Hi find  the chart attached and  the yellow shaded area at the bottom.can you tell me which one  of these two candles would be the reversal candle to draw your support line from ie the candle with the body which is lower or the second candle with the body which is higher but thre wick is lower.

Also if the support or resistance candle was a doji candle ie no body .Which opens and closes at the same place, would you draw the  line from there.

 

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[Rich Fitton]

Hi Darren,

I’d use the top of the small candlestick real body of the bar that formed the low. There’s been a fair bit of activity around that reversal too – you can see four bars all overlaying the zone with their price action. Definitely one to watch if we get back down there again.

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