The high price in candlestick charting is the top end of the upper wick, or the top part of the body if there is no wick. The high price represents the maximum strength of the bulls for the day. This is the point of short-term resistance because it represents sellers who managed to hold their line of defense.
Stop-loss orders for shorts tend to accumulate just above the high price of the day. The previous day's high is the first point of resistance for the current day's trading action. Trade either from the long side or the flat side when a stock is trading above the previous day's high. Refrain from shorting short stocks that are trading above the previous day's high or at the current day's high.
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