Resistance and Support Zones are equally very priceless in drawing together your Resistance and Support lines. Due to the fact that the prices don’t always respond accordingly to the lines though it does. Sometimes, maybe earlier or sometimes, later. You may get to see your drawn lines often very well. An example of rejection in the zone is:
Drawing our Resistance and Support lines is how we start again – as shown below:
The candlestick is where we go to see if our lines are correct. It is shown in the image below:
Now, we can start drawing the zones indicatively. On either a nice wick or an indecision candle is where we draw ours.
An image shown below is an indecision candle for those who don’t know how it looks. To qualify the Candle, first, the body must be small. The open price and the close price are near each other.
Additionally, the Candle range must be the direct center of Candle’s body (Between the low and the high). Finally, with equal length and long wicks protruding from each side.
The wicks protruding from each side of the candle signal to the trader that the price has attempted to move both up and down during the trading session of that Candle. The market’s inability to maintain either higher or lower prices gave rise to this candlestick pattern’s unique anatomy.
For the homework this time, you could send five print screens of the different zones you
made on the charts. Give a good reason and explanation why you have chosen to draw
your zones there.