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What is a Support Area in Trading?

Exactly the opposite of a resistance area, the support area is on the floor, the bottom.

The Support area is a floor that is formed by pivots (price action) hitting over and over again.

Anything more than 3 pivots is considered an area. When you have a continuing one, it becomes a strong area.

The minute you see it hit 3 times put your breaks on and do NOT enter!

But when you see it hit more than that, stay out altogether until there is a massive breakout either above the area with total confirmation. Or massive strength going in the opposite direction of where the resistance area is.

It is also super important to draw your areas. Simply recognizing it doesn’t matter. You need to draw it, so that it’s there for you to see.

Related Read: Day Trading Vocabulary

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