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Support AnalysisBefore discussing this lesson, we need to understand the Japanese candlestick pattern. What Is the Support Level?The significant prices at which sellers have already entered the market in adequate quantity pause to reverse the price movement. How Can We Analyze?This can be analyzed on price charts with horizontal lines where there is a pause in price at the same level again and again. SupportThe support finds a price level where buyers enter the market. The chart below is an illustration of this. When the price keeps moving lower, it will hit a floor. This enables buyers to enter with adequate quantities overpowering the sellers and stopping the price from going further low. This helps in analyzing a support level. How Do We Identify Support Levels?We need to observe where the price repeatedly pauses in the same place. The sellers enter the market in this place. Practice Session:Exercise: Find the correctly drawn support levels. Show exercise Nut ShellAn overview of the lesson discussed so far At the support level, there are adequate buyers to stop the price from falling further and reverse the price to the upside.
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