Part Three — Reading the Chart
Chapter 8 — Candlestick Support & Resistance
Candlesticks add back the detail the line chart removed: the full range of each period and the conflict inside it.
- Highs — the furthest buyers could push before sellers took control
- Lows — the furthest sellers could push before buyers took control
- Bodies — the settled portion of the period, open to close
- Wicks — the rejected portion, price tested and refused
- Rejection candles — a long wick into a level with a close back away from it
A rejection candle at a level you already identified is a confirmation. A rejection candle in the middle of nowhere is noise. Sequence matters: level first, candle second. Never the other way around.
Marking from candlesticks
Some traders mark from wicks, some from bodies. InstaSwich teaches marking the area between them — the body edge as the core of the level and the wick extreme as its outer limit. That is why levels are treated as zones, not hairlines.
Key concepts
- Bodies show open-to-close agreement
- Wicks show tested extremes
- Rejection needs context
Practical example
A long lower wick at established support is evidence; the same wick in the middle of a range may be noise.
Common mistake
Trading a rejection candle without a meaningful level.
Knowledge check
Check your understanding
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