TRADING RANGES WITH NEWLY FORMING SUPPORTS

Supports within a bull trading range, much like the resistances in a bear trading range, are also indicated by a minimum grouping of five candlestick bodies with the center candle(s) or wick(s) being lower than the bottoms of the two candles to the left and to the right. Notice that the resistances are not considered at this level to have value within the range. As the market moves upward, the supports should be marked, in case the market returns to that level.