CONCLUSION

By using real-body support and resistance levels, we can try to improve our trading and analysis on several levels. In

the short term, we can derive important counteraction trading points and improved longer-term entry levels. In the

longer term, we can use real-body support and resistance to get a jump on market breakouts in a trend-trading

strategy.

Let me reiterate: Candlestick charting should not be used in a vacuum. That applies to the real-body support and

resistance levels as well. You should, however, take the time to try out this methodology. I'm sure you'll find it

worthwhile, and a beneficial addition to your technical toolbox. It just goes to show that by keeping our eyes open,

we just might be able to discover new techniques.

John Forman is a currency analyst for Technical Data, a provider of real-time and day-end market commentary and

trading advice over the Telerate system. He writes mostly from a technical perspective and also has experience in

trading US and Canadian government cash and futures issues, equities and the energy markets.