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trailsillustrated's avatar

Traders? strength and resistance lines- how are you drawing them?

Asked by trailsillustrated (16799points) October 26th, 2009

I’ve had some losers- I think it’s my strength and resistance lines. On a candlestick chart, which is better to draw the line over/under, the wick or the body?

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2 Answers

DrBill's avatar

I use two formulas, one for the strength and another for the resistance.

Then adjust the strength to 85–90%, and adjust the resistance to 110%. Overlap the charts. Any point that gets within 5% of overlapping I avoid, The wider the margin the more of a buy it is.

As far as where to draw the line I split the body 60–40.

DrBill (16066points)“Great Answer” (0points) Flag as…

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