At its heart, technical analysis represents the study of price trends (or anticipated trends). In price terms, at their most basic, these can be divided into uptrends and downtrends. Within such trends, we see points where little price action occurs and conversely other points reflecting substantial price action and market tension. The idea behind support [...]
Currency Order Dynamics and Technical Levels
Sceptics may suggest that support or resistance levels can just as easily be randomly picked. The evidence however does not support such scepticism. Indeed, on the contrary, both academic and institutional research suggests exchange rate trends are interrupted or reversed at published support and resistance levels much more frequently than is the case at randomly [...]