MYTH: TALL CANDLE SUPPORT AND RESISTANCE
Do tall candles (tall bodies) show support or resistance halfway up the candle as some claim? No, based on research I conducted and discuss in my Encyclopedia of Candlestick Charts book. I found 41,301 tall-bodied candles that were twice the average height of the prior month, and measured how often a minor high or minor low stopped within the candle's body. A frequency distribution of the results, broken down into 10 percent increments of the candle's height, showed that “the middle of a tall candle showed no greater likelihood of exhibiting support or resistance than anywhere else in a tall candle.” Another test using 15 years of data on candles four times the average height came to the same conclusion.
- The middle of a tall candle is no more likely to show support or resistance than any other part.
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