Overreliance on Double Top Resistance
Disruption: The “Double Top Resistance” at around 1.13600 may not be reliable unless confirmed by volume or reversal patterns. It’s only touched twice and could also be part of a broader consolidation range.
Counterpoint: If buyers are still showing strength near resistance (as seen in volume spikes), this might signal an eventual breakout rather than a strong rejection.
2. Support Zones Too Close
Disruption: The “Support” and “Strong Support” levels are relatively close (about 30-40 pips apart). This could reduce the predictive value of the support levels, especially in a volatile market like forex Alternative: A single, broader support zone with a midpoint could provide a more flexible analysis. Downtrend Line Interpretation Disruption: The downward trendline assumes continued bearish pressure. However, the price has been forming higher lows, suggesting a possible trend shift Alternative Perspective: If price breaks above the descending trendline with strong volume, it could invalidate the bearish bias
4. Volume Ignored in Prediction Path Disruption: The prediction path in light blue doesn’t incorporate volume behavior. Without volume confirmation, price movement patterns can be misleading Improvement: Use volume at key resistance/support areas to validate breakouts or rejections
5. Lack of Fundamental Context
• Disruption: The chart is entirely technical. Upcoming economic data (like ECB or Fed announcements) could drastically change market behavior, rendering technical patterns ineffective.