Price Location

Support

A price level where buying pressure prevents further decline

Support is a price level where demand is strong enough to prevent price from declining further. It acts as a "floor" that holds price up. Bullish patterns at support have higher probability.

How to Recognize

  • Price has bounced from this level before
  • Buyers step in consistently at this price
  • Higher lows forming near the level
  • Increased buying volume at the level

How to Avoid

  • Don't short at strong support
  • Look for bullish patterns at support
  • Wait for support break confirmation before shorting
  • Support becomes resistance when broken