Today, I met up with some of my friends who doing Forex trading. One of the topics that we discussed (which you may also interest) is objectivity of identifying support/resistance (S/R).
In a lot of trading books, they said that technical analysis supposed to be objective. So, we tried to verify whether this is true. All of us attempted to identify S/R in the USDCAD daily chart.
The following charts show the S/R identified by us. OK, here, we are not discussing whether the way of identifying S/R correct or not. We just want to show different individual will identify different S/R even if looking at the same chart. And another important thing is in reality, we will act based on the S/R that we identify (disregards whether correct or not).
The above charts clearly show that different individual identify S/R differently, and also influenced by individual risk tolerance and capital. This is quite clear that S/R identification is rather subjective.
In my opinion, we must find way to make S/R identification as objective as possible. I will share with you the way in the next post.