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Levels & Patterns

Support

Beginner

A price area where falling prices have stopped before, because buyers stepped in.

What it means

Draw it as a zone, not a thin line. Each test uses up buy orders, and obvious levels collect stops just beyond them.

Illustrative example, not real market data.

In practice

Support forms where buying has repeatedly outweighed selling. Traders use it to plan: shorts take profit into it, longs look for entries when price shows rejection there, and stops on long trades go below it.

The best levels are obvious on a higher timeframe and produced a strong bounce the last time they were tested.

What to watch for

Support is a zone and it weakens with every test. Sell stops sit just below obvious levels, so a quick dip under support that recovers is common. Buying only because price is at a level, with no sign of buyers, is catching a falling knife.

Entrix Academy

Learn these terms step by step, one lesson free

Entrix Academy is the trading course inside EntrixAlgo. It teaches the ideas in this glossary with interactive lessons, practice and a final exam. It is part of Pro, and a free account opens one lesson of your choice.

  • 129 lessons, start anywhere
  • Practice on every lesson
  • Final exam and certificate