The lines in the chart are drawn at previous support and resistance and could indicate a change in momentum. Let's give this chart a rest and check back next year to see if the analysis was any good.
@hicranhalil, I think it will break on the retest. But on a 15 min chart I'm looking for this
JamesPowell
⋅
Is this "Random Walk"?
11021992
⋅
@JamesPowell, I have no idea what you're asking to be fair.
JamesPowell
⋅
@11021992, random walk theory that markets move in no particular pattern. I don't follow it but was reading and it was suggested that pretty much any arbitrary line could be placed on a chart and sooner or later it would become support and resistance. I think their basic idea was to disprove support and resistance as traders traditionally look at it. Personally I think both to be correct. We can use support and resistance and also any line will eventually, at some point serve as support and resistance.
I give no value to the random walk stuff. Just was asking about your lines. You seem to be experimenting.
Support and resistance, as seen on a graph can often be predicted and is useful. S/R is the fodder of so many other theories and books as well. The waters are so muddy though, a lot of traders don't even bother instead rely on indicators and oscillators.
11021992
⋅
@JamesPowell, Thanks for explaining. Interesting theory. Just like you mentioned, I kind of believe in both.
On this chart we have, from my point of view, the most likely reversal zones. In the chart we see lines, but they should be interpreted as zones or areas.
I rarely use any indicators. Most of my charts show the RSI, but I only use it on some occasions.
This was indeed more of a experiment or a lesson to see how price reacts to the certain areas on the chart, just like this one on the EURUSD that I posted a few months ago:
DanielMesa
⋅
of course its good because you're using resistance and tails! great job!
thanks