K
krugman25
Totally agree with the 'Trendline Support' which you have drawn, and this is certainly worth looking out for.
The 'Major Resistance' level which you have drawn I do not agree with, it looks scatty and has certanly not been respected towards the latter more recent stages of the chart with price closing on either side - to me that's weak.
I' go as far to say that all that matters is the 'Trendline Support', the rest, in my own view of course, is akin to trying to establish something linear in a random data sample. If you squint hard enough then yea, maybe there is something else there
Major resistances are not always respected 100% of the time. What makes them major is the number of occurrences where a wick or a real body strongly reacts from the level. I always go for a "best fit" approach. The resistance throughout 2015/2016, the pin bar from support in Aug 2018 and the majority of weekly closes over the last 6 months that were +/- 10 pips within that 1.1390; are all of the reasons I made that level a major support and found it to be a best fit.
Those other smaller S&R lines are not as difficult to see as you are making out. For example, that smaller upper trend line resistance is clean, clear and has been in play now for 5 months. It obviously is not as significant as the trend line support which is also very clean, clear and has been in play for 20 months now. I am going to consider any S&R that is anywhere from major to moderate importance, but obviously give a 20 month trend line more significance than a 5 month trend line, but I will consider all of it as I subjectively analyze the trade, optimal entries, optimal exits, risks, etc.
