Support(Supporting) Basic Introduction
Support Describes the phenomenon in which prices have difficulty continuing to decline in a certain area. It results from concentrated buying power, but the area can still be breached and should not be used as the sole basis for decisions.
Support What is Support
Support Refers to the phenomenon in which, after the price of an asset falls to a specific area, it is more likely to find buying support and temporarily stop declining. This area is often regarded as the “floor” of the price and is usually associated with greater buying supply or stronger buying pressure; if selling pressure is sufficiently strong, the price may still fall below it.
How to Identify a Support Area
Analysts typically refer to previous lows to draw support lines or define an area, using at least two lows and ideally three or more as the basis. Support is often drawn as a horizontal line; if the line extends diagonally, the evidence refers to it as trend lines. The more reference points there are, the stronger the basis for the analysis generally is.
Role Changes After a Break Below
When the price clearly falls below support level this level may often turn into a resistance level, with its role changing from a potential “floor” to a potential “ceiling,” creating an obstacle to subsequent gains. This is a common chart-observation pattern, not a definitive result guaranteed to occur every time.
Limitations of Use
Support Support and resistance are both observation tools in technical analysis. Relying on these lines alone may involve significant risk. When learning, treat them as supporting clues and combine them with fundamental analysis and other technical indicators for cross-checking, avoiding treating any single line as a definitive conclusion.
Original Tutorial
https://www.binance.com/en/academy/glossary/support
Mark it complete when you understand it.
Opening a lesson does not complete it automatically. You can change its status at any time.