Spot on!
S/R, like indicators, can only show what happened in the past which, at best, is no more than a suggestion of what may happen again.
Same with supply and demand. The best we can do is make an educated guess based on past reactions
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I use S/R in my charting and have found it very helpful in my analysis.
Using daily charts I will scroll back a few months and place my lines there. Scrolling forward it is very interesting to see how price reacts around these areas.
For me it’s not one and done. I will zoom out and look to place the lines at H/L’s and where there is consolidation or a group of candles with similar opens or closes. Then I’ll place the line at a level where the wicks and sometimes a “rogue” candle are penetrating S/R prior to a move up or down.
ProAct traders have some good videos on youtube that I have found very informative.
Here’s one as it relates to price action and S/R.
Good Luck,
KC
Yes, support and resistance really works, they are not just random lines. Both are very important, they can give you indication of trend reversal (drawn with trend line), right entry and exit time in a trade, along with other indicators like moving averages, both can be very useful for the traders. The point is you should know how to draw and use these lines.