How to cleverly use support levels when trading?
(1) In an uptrend, during a pullback, if the bearish candlestick is weaker than the previous bullish candlestick, especially when approaching the support level, and the trading volume shrinks, then a subsequent bullish candlestick quickly engulfs the bearish one, leading to a rise in the price; this is considered effective support.
(2) In an uptrend, during a pullback, if bearish candlesticks frequently appear, indicating an increase in selling pressure, even if there is a slight rebound near the support line, the buying power is weak, and the price will eventually break below the support line, which is referred to as a market reversal.
(3) If consolidation occurs near the support line and after a period of consolidation a long bullish candlestick appears, the support line is naturally effective.
(4) If consolidation occurs near the support line but a long bearish candlestick slips below it, investors will rush to exit to minimize losses, causing the price to continue falling for a while.
(5) If the price breaks below the support line from above, it indicates that the market will shift from an uptrend to a downtrend. Generally speaking, in a major uptrend, if a medium-term downtrend appears and the market breaks below the support line of that medium-term downtrend, it indicates that the major uptrend has ended; in a medium-term uptrend, if a minor downtrend appears and the market breaks below the support line of that minor downtrend, it indicates that the medium-term uptrend has ended, and the price will continue to decline following the original major downtrend.
(6) If the price approaches the support line from above but fails to reach it or just touches the support level before turning back up, and if there is significant trading volume accompanying this, then when a downward adjustment occurs again, one can buy in to gain rebound profits.
(7) If the price breaks below the support line from above, and there is significant trading volume accompanying this, it indicates that another downward trend is forming; one should sell at the slightest rebound to avoid greater losses.
(8) If the price approaches the support line from above, although it hasn't broken it, but there is no trading volume supporting it, it signals that there is no possibility of a rebound, and one should exit the market as early as possible.
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