Rapid Fire Marketing Inc. (fka RFMK)

[DollarsOnPennies]

The RFMK chart shows two trendlines, one connects the body of the candles, the other connects the wicks of the candles.. both are valid and show the direction of the market. As drawing trendlines is a highly subjective matter, it is possible to allow multiple trendlines to co-exist.

Often the differences in drawing trend lines depend on whether the high and low prices are used or whether the closing and opening prices are used to determine the line. On a candlestick chart, the question becomes using the wicks of the candlesticks instead of the solid bodies of the candles only.

Generally, closing prices are more significant points than the intra-day prices on a chart, and if a trend line can be drawn using the body rather than the wick of a candle, the body should be used. Similarly, when drawing a trend line, an intra-day spike through a line should not automatically invalidate it. If there is a candle that closed below the trend line, though, it would be a much more serious breach of the line.

In the end, it`s whatever works.
Technical analysis is an art.. Not a science.. Link Back Back d[~_-]b