This is the current chart. It is important to observe the areas mentioned in context of the bigger picture.
These 2 areas were hugely important in this weeks action and here is the reason why:
It is due to how price reacted at these 2 levels since it first got there.
Price spent most of January getting pushed back there.
This is a close up on December and January – look how 1831 was the prominent price then. This is very important. It was gapped over the first time, it became pivotal when 1843 was the upper edge. 1831 was a chop zone then resistance and then support.
It sold off hard from there and went 100 pts down before finding resistance there again (the jump back up in this chart has to be admired).
Yesterday when price shot up from 1850’s I thought about the concepts of floor and ceiling from the jigsaw video. I considered selling and did scratch and left it for the day.
I also thought about one of the best descriptions of support and resistance mentioned here in https://atoast2trading.wordpress.com/2014/01/22/basics-of-trading-2-support-and-resistance/
This is a close up on recent action with the HVN prices noted – 1832/1836/1842 important support.
Althought I have not quantified them I have marked a fib extension using 127% of last high/low swing. I find some decent traders use this and the 50% retrace.