Actually, people shouldn't be drawing a line. They should draw a band, or an extra thick / wide line.
I think most people should not be trading support / resistance because they just see a swing point and then they associate it with S/R trade, which does not seem to work that well (especially counter trend), and most of the time it’s a sucker’s play. I’d say that it is far better (if going long) to wait for a proper resistance line (that has multiple rejections) to develop, meaning there will likely be stop orders above the multiple swing points, and once it breaks with momentum (thrust) then one can have some confidence that move is for real, and then instead of chasing the price (and risking false breakout), a trade can be taken on the retest when resistance becomes support. Obviously there should be few additional PA nuances (filters) to make such S/Rs trades into a good edge. Other than that, I’d tend to argue that the “KISS baby” S/R trades (i.e. bounces against previous swing points and counter trend) don’t work that well without additional PA clues (filters). Everyone trades differently, and every trader needs to backtest for himself what works and what does not, and what are the specific surrounding nuances / circumstances present during each set-up.
Added S/R line showing price moved sideways dropped @ first circle which means sellers stronger than buyers, watch when price returns @ second and then again third circle. Also forth touch and drop follows that as well.
These are characteristics/weakness of individual traders. They have nothing to do with the facts of Price TA... which shows EXACTLY when the market has shifted from buying to selling, or selling to buying. Traders should recognize that. "How long will the indication stand and how far will it follow through?".. That mut be "played by ear". Expert as I am, even I can't tell you that. With Price TA you can know 100% when something "starts", (when something changes, that's a "new start"). Knowing that is extremely valuable. BTW... (1) I don't believe in the notion of "confirmation". Anything can fail at any point regardless of how "confirmed" it seems in a trader's mind.... and (2) if you argue with me about ANY aspect of Price TA, you're doing yourself a disservice.
%% MAYBE; but after much thought [after hours LOL]45 minutes is not his[or her] problem; could even make sense with 10 or 10 years of them LOL. 2} BUT Joshua Lukeman , Market Makers Edge , had real good point; avoid trader drawn trendlines , which many times have a wrong bias . 3 }In hindsight, a topping area could occur on a hour chart........or less ; but double tops or triple tops are so common, I would not get to excited about them. In other words, we can call it a Koala Bear, looks like a bear , but not really a bear @ all; nor are we going to change the name of a Koala bear, [Edit ,nicknames are fine]
Don’t worry, self-appointed experts of your status are not worth arguing with. Even though I don’t like losing trades, I no longer have the need to be right. All I care about is making as much money as I can in a risk-controlled environment. I post mainly to remind myself of certain principles (when I read this forum as a way to distract myself from other things). I find it entertaining to read posts from experts like you whose attitude matches their PA skills, although often it’s on the opposite end of spectrum of my preference. Today's Stock Market Report Helium was up, feathers were down. Paper was stationary. Fluorescent tubing was dimmed in light trading. Knives were up sharply. Cows steered into a bull market. Pencils lost a few points. Hiking equipment was trailing. Elevators rose, while escalators continued their slow decline. Weights were up in heavy trading. Light switches were off. Mining equipment hit rock bottom. Diapers remain unchanged. Shipping lines stayed at an even keel. The market for raisins dried up. Coca Cola fizzled. Caterpillar stock inched up a bit. Sun peaked at midday. Balloon prices were inflated. And Scott Tissue touched a new bottom. And batteries exploded in an attempt to recharge the market...
I'm just trying to help... while you're being snarky. I won 3 divisions of the US Investing Championships and finished in the top 10, 3 other years. And you think I'm just blowin' smoke? (It's not just me saying so, it's a matter of public record... results having been published in IBD and Barrons.)
Better don't read anything from @scat, IBD, and Barrons. Because after reading, readers have to spend years decontaminating their minds.
The charts you post tell a different story. Maybe you enjoy wasting peoples time with these childish charts ?