The support area is where the price stops falling, and buyers start to enter strongly. Understanding it correctly helps you know where the market might rebound and establish a safe entry point.
First: What does support mean?
Support is a price level where strong demand appears, meaning there are people willing to buy when the price reaches this level. When the price drops and reaches this level, it often stops or rebounds.
Second: How do you determine the support area practically?
1. Monitor previous lows
Open the chart and observe where the price stopped falling multiple times. If you see the same level where the rebound occurred repeatedly, then this area is considered support.
2. Calculate the average of the lows
If there are multiple lows close to each other, take the average prices between them. For example, if the lows were at 105, 107, and 108, then the support would be around 106.5.
3. Monitor the trading volume
When the price reaches a certain area and trading volume increases, this indicates that buyers have entered strongly. This area is often actual support.
4. Use different time intervals
Look at the same area on multiple time frames, such as hourly, daily, and weekly. If it appears as support on more than one frame, it is stronger.
Third: How do you confirm that the support is real?
- The price rebounded from it multiple times
- Clear bullish candles appeared after reaching it
- Trading volume increased at it
- It was not easily broken when the price returned to it
Practical example ✅
If the price drops and reaches an area it has bounced from before twice, and a bullish candle appears afterward with clear trading volume, then this area is considered support. Buying from here is logical, with a stop loss placed just below it.
Summary
The support area is not determined by a single number, but is defined by observing the lows, trading volume, and price behavior at that level. The clearer and more repeated the area, the stronger it is. A smart trader does not settle for
Looking, rather it calculates and analyzes before entering the trade.
