Not all S and R lines are the same. There are minor support and resistance levels that are made throughout the day in futures. Then there are what I like to call daily tops and bottoms which are more significant since they predict future support or resistance that can occur beyond the current day and become relevant in some other day for example later in the week. So these major S and R lines give us a Non-lagging indicator to help (based on our trading plan) the ability to see into the future when trading futures and achieve not only a profitable trade but a higher win rate then 50% based on over 100 trades with real money.
If they have a provable hypothesis, then it can be expressed as IF,...THEN's which when tested yield a boolean result based on context. Most whom claim the invalidity of the different flavors of TA miss the relevance of context. Context is THE differentiator. What informs and shapes context is perception which is interwoven with established beliefs. Beliefs will either allow or deny the ability to perceive something in objective reality - for there is always the interpretation of results whatever the results may be. Traditional S/R is a vertical perceptual orientation to the market. If one shifts to annotating channels which can be described as a parallelogram based S/R channel then the market can be seen with a horizontal perceptual orientation yielding a sequence of events. This sequence of events is more closely coupled to the dynamic nature of sentiment. This sequential order of events is symmetrical and can be observed in both opposite yet complimentary orientations of price discovery. It is the micro-structure of continuous dual auction markets based on human emotions. Human emotions are what assign value, algo's are but an extension and amplification of this function from a human creator. All this can all be observed by deconstructing the market into it's basic granularity and building a foundation of distinctions from the pieces. The pieces start with analyzing a single bar pair. The bar pair is a parcel of information that exists both on the price and volume pane when graphically represented in charting software. This deconstructing the market into it's basic granularity is much more difficult to do from a top down CW approach that is based on game theory, averaging and statistics all which introduces noise. To build a system based on certainty, it requires the use of the appropriate math. That math interprets vectors of magnitude and direction into a boolean frame of reference. These boolean values can be assembled to create datasets. The datasets can be factored to reduce a complex collection into a final result of 'continuation' or 'change'. Of course YMMV, and the above is a description of what is possible when the goal is of understanding the markets are approached with an open-mind and an ability to do one's own DD. The only prerequisite is a mind open enough to challenge pre-existing beliefs of what is 'thus and so.' Profits are but a natural result and byproduct of understanding, achieving greater understanding is directly correlated to the increase in money velocity and growth of capital one achieves and experiences. However, most participants that approach the market's do not have their 'eye on the ball' and instead focus on price and the movement of price without considering that there is a fundamental variable that influence the price making price a lagging variable. They usually, say "show me the money!" dismiss and disparage anything outside their frame of reference. This point-of-reference functions both ways and is primarily a self-selector. They exclude themselves of perspectives that are outside their point-of-reference for better or for worse. In general, 'truth cannot be told, it can only be experienced' by anon This is a minority view. May you have good fortune in your exploration and discover that which you seek.