Wide Range Bodies as S/R

[TinGull]

I know some folks like pivot and nihabashi use WRB's as S/R levels...thought I'd share this chart of SPY. Showing a big a$$ hammer at the top of that WRB oughtta provide it some support, especially with the volume increase, right? Well, today's gonna be interesting as price is indicated much lower. Time to buy it? I'm staying put for right now, but after the first 30 minutes I'll have a clearer picture. Might be headed a bit lower.

[brownsfan019]

Tin,
I've never looked at WRB's into a daily chart analysis. Interesting observation, let's see if that provides some support here or not. From a traditional candlestick perspective, I prefer s/r levels with 'candle clusters'. Not sure if I read that term somewhere or not, but basically looking areas where price had respected previously a number of times and windows. Don't underestimate the power of windows on a daily.

That link to a window explanation is pretty good. That site is not bad either for candlestick analysis. I used to visit it when trading stocks.

[TinGull]

Yea, I definitely watch windows and clusters, too. WRB's are definitely something to note on dailies. The more and more I mark them off the more often I see price respecting them.

[brownsfan019]

Something I will have to take note of too then. Never thought about WRB's on the daily, but I'd venture a guess that they may be pretty strong on a daily chart.

[TinGull]

They do seem to be. If today is supported then a buy would be in order until 156. I'm leery of this potential false break.



But gotta keep on to the upside until things are proven wrong.

[Reaver]

That's interesting Tin.

So far the best s/r I have found are previous distributions.....