Question
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Can trendlines penetrate bodies of candle?
2 Answers
<p id="isPasted">The answer is - as any open minded chartist should tell you - is that it depends. I like to start with highs and lower (tops and bottoms of the shadows, in candle terminology) and see if I get a trend line that actually describes the action . I then look at the closes only on a line chart just to be sure that it says something similar.</p><p>The longer your data, the less it matters as the differences between high/lows and the closes becomes a small fraction.</p>
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<p id="isPasted">No, standard practice and most expert opinions state that a trendline should not penetrate the body of a candle; it should interact with the wicks (shadows) to accurately reflect support and resistance levels. The trendline should flow naturally and touch meaningful price points on the wicks, providing a reliable gauge of the market's sentiment. </p><p><br></p>
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