The issue I have with s/r levels is there is no objective way to identify what price levels they are or aren’t, nor any objective way to identify which s/r levels will affect price movement.
There are always resistance levels overhead and support levels below. How does drawing them in help your trading?
In the last 6 months, AUD/CAD has printed 8 swing highs: the first 2 were about equal but the next 6 were all lower. At the same time, it printed 7 swing lows, 6 of which were lower lows. So there was clearly a downtrend. The chart now had a dozen or more s/r levels splayed across it.
Until 24/10, when an outside day printed that was confirmed as a swing low a few days later when price broke out above the previous swing high. The lowest low in the 6mths, 04/10, was not at a s/r level.
Price then rose, breaking through and closing above the next 5 s/r levels but not the 6th one. It has now fallen back and closed below 2 previous s/r levels but yet not the 3rd one. So doesn’t that indicate that 5 out of 6 s/r levels were irrelevant, and 2 of them have been irrelevant twice? So what chance
Of course, there are other ways to draw where s/r lines should be so maybe my estimate is under.