the hAnDbook of technIcAl AnAlysIsintegrating Candlesticks with support and resistance
Some of the most reliable signals in technical analysis are based on the interaction
of candlesticks at support and resistance. In Figure 14.44 we observe the GLD
SPDR Gold Trust Shares reacting at support and resistance on the weekly chart,
via bearish and bullish reversal candlesticks. We also notice that the stochastics
are confirming the reactions at the support and resistant levels.
integrating Candlesticks with Oscillator analysis
In Figure 14.45 we observe price in a position where there are numerous bullish indica-
tions like channel bottoms, overextension on the stochastic oscillator, and a Hammer.
integrating Candlesticks with ichimoku kinko hyu analysis
In Figure 14.46 we observe price penetrating the cloud at its thinnest point after
finding resistance at the cloud, or Kumo. We see the upper shadow of the first
candle in a Three Black Crows formation testing the upper band of a linear re-
gression channel, which is at the prior resistance level. The very thin clouds ahead
suggest that more bearish action may be unfolding.
integrating Candlesticks with fibonacci retracements
In Figure 14.47 we observe a piercing line rebounding off the 38.2 percent
Fibonacci retracement level, which coincided with the lower band of a linear
regression channel. The Fibonacci retracement level also occurs around the prior
support zone.
figure 14.44 Integrating Candlesticks with Support and Resistance on the Weekly
Chart of GLD SPDR Gold Trust Shares.
Courtesy of Stockcharts.com