Friday 1 April 2011

ingt

The first candle to open and close completely below
the support line, which is the horizontal line, is a black
candle with a long wick at the top. This candle turned
the support into an S90. The very next candle is a
small white candle. This white candle did not move up
and touch the S90. The third candle, however, did,
and then fell off. The distance between the top of the
white candle and the S90 can be considered a hole.
Holes can be generated with a single candle.
General rule of thumb: The smaller the hole, the
greater the subsequent move. You can see how much
the market fell after the third candle touched the S90
for the first time after it became legal.

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