The decision to draw support and resistance lines at the wick or body of a candlestick depends on the trader's preference and trading strategy. Both methods have their advantages and disadvantages.
Drawing support and resistance lines at the wick of a candlestick may provide a more accurate representation of the price level where buying or selling pressure has entered the market. This is because the wick shows the extreme high or low price of the period, which may be a more significant price level than the open, close, or average price. Traders who use this method may place more emphasis on the wick because it represents the high or low of the period, which is often an important level of price action.
Drawing support and resistance lines at the body of a candlestick may provide a more conservative approach, as it considers the open and close price of the period. This method may provide a clearer view of the market's sentiment and the price level where traders are comfortable buying or selling the asset. Traders who use this method may place more emphasis on the body because it represents the actual price range of the period, which may be a more relevant level of price action.
In general, traders should use their own discretion and consider their trading strategy, time frame, and risk tolerance when deciding where to draw support and resistance lines. They should also consider the price action and the trend of the market before placing their trades. Ultimately, the most important factor is consistency in their approach to drawing support and resistance lines to ensure that they are making informed trading decisions.