my thoughts on that chart is that while support and resistance lines hold, sometimes they don't. they can be tested, they can be broken, and you can't be 100% certain what will happen unless you have information on every trader in action, and every trader sitting on the sidelines just waiting (impossible).
you can know that there is a 80% chance in the long run that a certain s/r line will hold. but it's still random... right? don't get me wrong, 80% is good enough for me haha. and that definitely is a strong s/r line.
with that aside, natural disasters such as Japan's tsunami last march sent the USDJPY down from 81.34 to 76.42... close to 500 pips. was the tsunami random? yes. was what happened to the JPY, everyone rushing to buy JPY even though a natural disaster had just hit japan, predictable?
edit:
YES! i'm a new member now.
you can know that there is a 80% chance in the long run that a certain s/r line will hold. but it's still random... right? don't get me wrong, 80% is good enough for me haha. and that definitely is a strong s/r line.
with that aside, natural disasters such as Japan's tsunami last march sent the USDJPY down from 81.34 to 76.42... close to 500 pips. was the tsunami random? yes. was what happened to the JPY, everyone rushing to buy JPY even though a natural disaster had just hit japan, predictable?
edit:
YES! i'm a new member now.