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 [...]
ORIGINS AND BASIC CONCEPTS
At least in its modern version, technical analysis is generally seen as emanating from the “Dow Theory” established by Charles Dow at the start of the twentieth century. The core original ideas of technical analysis focused on the trending nature of prices, the idea of support and resistance and the concept of volume mirroring changes [...]