No it is not false.
While a trendline may have a high probability of acting as strong support or resistance... it does not provide a reference point that sellers (supply) exist at this level. Price has never been here yet! Fib extensions just the same-- another tool (and to me it is rather spooky actually how often they act as walls I might mention)-- yet they dont indicate sellers truly existed at this level. Nor does an ATR range. Nor does any other number of ways used to predict where price may turn during all time highs.
Only once price has established a pivot can once conclude with certainty that supply or demand exists above/below current price. This is an absolute fact ammo and cannot be disputed.
What we dont ever know however with certainty is whether the buying pressure on the way back up will be enough to absorb the supply and breach the level... or whether enough unfilled limit sell orders still exist along with new sell orders that will exceed available buyers-- thereby driving prices lower. This is the uncertainty that also cannot be denied.
But regardless- a key point here is the pivot gives one an actionable point of reference in which to trade against. Empirical proof that sellers did indeed exist at this level. Trendlines do not.
