When in doubt about where strong support or resistance is, it is often a good idea to look for candle spikes. These spikes normally show areas where the price slipped into but very quickly sent back from where it came. This shows strong support or resistance. The chart below shows how they could have acted as good trading support signals. Remember that long blue candle next to a red candle (or the other way round) is often also a disguised spike because if you add them together they become a spike.
A stronger reversal formation is candle tweezers where 2 spikes occur directly next to each other (not shown in the chart).
Click on the video above to view it
Last Updated on Tuesday, 06 December 2011 20:20