YM, Tell us roughly where the price will go next - higher, higher still, lower, lower still, or not much change? You can elaborate on the position where you think the price will finish in the next box that we will bring up, if you so desire?
MrCharts; I suppose I have picked up some knowledge along my circuitous route thus far in my trading career. Yet I still consider myself a newb! I am constantly trying to learn and distill information. It is true that price will do what it wants to do and we as traders must base our decisions on what it is currently doing. Support/resistance leaves clues as to what the price MAY do at certain levels, but in no way is it written in stone what it WILL do as it has done in the past, as you well know. Now as a trader, we know the price can either test those levels or break those levels, I suppose it is an exercise in $$ management as to how one attempts to trade these levels. It is surely possible that what you state is true...it which case it is the management of ones trades and ones mental acuity that may separate the men from the boys.
MrC. In my humble opinion, I would anticipate the price to bounce off the high it's at now and trace back to the last yellow line by the end of the next box.
I know how you worked out where the price might be, but what if I told you that you are probably wrong?
Well, i wouldn't be too surprised. I see that at the very right side of that chart, price got above the last couple of retests of the high, so after one or two tests and failures, if price then extends beyond the high, then it will probably keep going. This is where I've been struggling. I think that I see what I want to see and not what I should be seeing, if that makes sense! Maybe I'm seeing what the pro's are leading me to believe.
Support is where the price has been hanging around for a while, much like resistance, and there is another name that covers both, so you never have to worry whether you have your swing or pivot identified. Most will not have a clue what it is I am on about, but look at the chart and it should be obvious? Believe it or not, the chart demonstrates a well known occurrence that any astute trader can make money from, but the trader must of course observe the basic Laws, otherwise you might as well draw some of the myriad of TA squiggles on the chart, and ruin the masterpiece! A spike is not support, and if a spike hits a previous level that is not support either, it is just a sudden spurt of either black box trading, or emotional reaction to a news announcement.
NP WM, If you got a straight answer then you would not have to think, and that is an injustice to any man!