I have a system that i trade a breakout of a weekly S/r level, after a daily candle close above or below that level for the breakout, with a retrace. Is it something that is going to continue to work forever, trading just S/R breakout from weekly levels? I know someone who has traded for 13 years. The reason i ask is because isn’t really just price action trading? I use no indicator only S/r level and price movement after that candle close. People said a valid S/R is valid forever really because history repeats itself, just seeing how accurate that assumption is really.
There are varying theories on this, but my belief is that support and resistance levels are useful because so many traders look at them to determine where to place their stop and limit orders. This means there can be a concentration of buy orders around a support level which could stop the market from trading lower.
As long a support level hasn’t been broken, it will tend to attract a concentration of buy orders, even if it is an old level, perhaps especially because it’s an old level that hasn’t been broken in years.
It has been around since data has been plotted in charts. S/R will be around for as long we plot data on chart. How well you can use/trade that is really up to you.
I had a friend who plotted S/R lines going back to the earliest available data for currency pairs. Although forex was totally different several decades ago I remember it worked out quite nicely for several of his trades.