G'day, I'm interstate at the minute and away from my desk, but briefly.......this is how I consider it........
IMO......
Defining potential support and resistance levels, is more an art than a science, and sometimes they are a (slightly) moving target, which keeps you on your toes.
Most often potential support and resistance appears in zones, rather than at exact levels....and most often larger cap stocks have tighter zones than small or micro cap stocks, this appears to reflect the degree of retail and shorter term involvement in the instrument.
So if you like, the area between the body and the tip of a wick, can form a zone of potential support or resistance.
Or another way, multiple tip touches within a relatively tight level can form a zone.
I personally use a Darvis hybrid style to mark the levels, where I use the tip of the wick, but I know the single line will actually represent a zone........and I prefer to also see future price action respect these levels, as a confirmation of them.
And FWIW while I am on the subject, small breaks through potential support or resistance, which are recovered quickly and easily, show the zone is fairly strong, but big deep breaks through, even if they are eventually recovered, suggests that the level is struggling to cope and may be overwhelmed in the future.
Hope that helps
Cheers
