That strong buying potentially bar was followed immediately by an upbar that closed above the previous bar. I would of drawn the support line off of the low of this high volume bar like you did.
The resistance line I would of drawn at the same level you have but from where you have put the arrow to the right of creek. I wouldn't of noticed it from that left arrow you have drawn.
I would of probably bottom fed and had a buy on that support line with a tight stop at 1.79 (tick below a psychological number) which would of been closed just below the top of the creek at $1.98.
The first test you marked after the break of the creek I would not of entered on as the volume was too high and it closed poorly.
The spring of the test is interesting as it received even more supply but the next bar which closed on its high with even more volume looks like a 2day shake out to me. The following bar I would call a test and I would of entered on a tick above the test with a stop a tick below the test. So entry $2.05, stop $2.00.
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