My hairline is suffering from Traction Alopecia, will it ever fully recover? (photo)

If you have traction alopecia, the hairs may not grow back. Give it about one full year to see if your hair will grow back.

You are probably correct in determining this is Traction Alopecia.  I suppose there is an outside chance some of the weaker follicles may be strengthened with topical Finasteride and so it may be worth a chance.  After some time, you may consider hair transplant, however, you will want to be clear whether Androgenic Alopecia is occurring as well.

Shaving cannot help regrow your lost hair.  Also, if you have not seen any improvement in the last 8 months, it is unlikely that you regrow your hair without any intervention.  It is not bad to be seen by a hair doctor for a proper diagnosis and treatment.Thanks,

We see this type of hair loss commonly in men who tie their hair back tight. It's unlikely you'll get much improvement but speak to your physician if Minoxidil (Rogaine) can help. In our studies of traction alopecia in Sikh men, it's pretty clear that minoxidil worked better in younger men than older. The only option if Rogaine doesn't help is hair transplant surgery down the road. Shaving won't help - that's a commonly held myth

Try Rogaine and LLLT for 6-12 months.  I have seen improvement with both of these but you do have to use them for at least a year.  Shaving the hairline will not work, unfortunately, since the damage was done below the skin.  Shaving only makes the hair short so that they FEEL like they are growing in stronger, but they are not, unfortunately.I know you wrote that it was obvious why you could not get a hair transplant, but why not if it was appropriate?  Hair restoration surgery works very well in cases of traction alopecia.  Does pattern hair loss run in your family?  MY suggestion would be to make some inquiries about finding a good hair surgeon in your area so
that you can get examined and make sure this is not early onset pattern
hair loss.  Try Rogaine and LLLT first, but you may be a candidate at some point in the future so don't give up hope!