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 [...]
THE CHALLENGE OF TECHNICAL ANALYSIS
Technical analysis has posed a challenge to economic analysis in its ability to predict exchange rates. As a result, considerable research has been undertaken by the economic community on how technical analysis works, both in practice and in theory. It is not for here to go through this research or literature in detail. Rather, we [...]