In actual trading, most people don’t know what point to buy and what point to sell. They don’t know what is the key position. For example, when the market rises, when will it stop or when the market falls? , when will the fall be controlled? You may often see or hear the support and pressure levels mentioned by some analysts, but you don’t know how to find them. This article will teach you how to find the pressure and support levels correctly!

1. What is pressure and support - (click to view)

2. Seven methods to judge support and pressure points:

1.MA Moving average: (MA moving average, relationship with support pressure - )

More commonly used, simple and easy to understand. In actual combat, the 5, 10, 20, 30, 60, and 120 day lines are more commonly used. The moving average is effective, with an efficiency of 60% to 80%, but it is not accurate enough because the moving average value changes. When the price deviates far from the moving average, the price will usually fall back, and it is safer to buy at the fallback point.

①Under normal circumstances. When in a rebound trend, if it has fallen below the moving average, during the rebound, the moving average closest to the current price is the pressure line (the 5-day line in the figure is the pressure line)

② Under normal circumstances. As shown in the picture, if the market starts to fall, the moving average closest to the current price (the nearest in the picture is the 5-day moving average) is the support line for the price to fall.

③When the price runs above the moving average, These moving averages can be called support lines. On the contrary, when the price runs below the moving average, these moving averages are called pressure lines.

As shown in the figure, if we only judge the support and pressure from the moving average, the yellow 10-day line closest to the current price is the first pressure level, and the white line is the next pressure level. The purple 20-day line is the first support level, and the blue 30-day line is the next support level.

2. Chip-intensive area: (Currency market technical analysis: the relationship between trading volume, support and pressure - )

It is also a very commonly used method to judge support and pressure points, and It is very accurate, focusing on the chip-intensive area, because its accuracy is the highest among all judgment support and pressure points.

The chip-intensive area truly reflects the important knowledge points of price, quantity, and the mentality behind it.

It means that there are many people buying in a certain range and making profits. Or there may be many people in this position who are stuck when the price falls. If you make a profit by buying, it will become a strong support when the price corrects in the future. Similarly, if this position is after heavy volume falls, and a hold-up plate is formed above it, when the price rises in the future, it will pass through this hold-up plate area, which will become a strong pressure area. Because everyone needs to get rid of the trap.

Support: During the decline, it is the upper edge of the K-line that had previously experienced heavy volume growth.

The physical part of the two heavy-volume rising K-lines is the support range (a chip-intensive area). The red line is the first support level of the support range. After falling below, it enters the support range of the green line. After everything falls below, look for the next support.

It is safer to buy at the support position. Belongs to the safe zone.

Pressure: During the rebound, it is at the lower edge of the K-line that had previously seen heavy volume decline.

Similarly, the entire physical part of the K-line is the pressure range, and the horizontal line position is the first pressure level. After breaking through the entire pressure range, it enters the next pressure level.

If you cannot see an obvious increase in volume energy using the daily line, you can use 4 hours. 1 hour line.

3. Highest point and lowest point:

Commonly used, but not accurate. The highest point and lowest point within a fixed period of time within an interval are empirical, but also very practical. It can also determine support and pressure points. The highest point and the lowest point are the highest and lowest points formed recently. Both can be turned into support and pressure levels.

When a low point is broken, there is a new low, and when a high point is broken, there is a new high. After the high point pressure is broken, it will become support during the callback. After the low is broken, it will become the pressure on the rebound.

4. Fibonacci retracement: (currency market tactics, Fibonacci retracement level, actual operation - )

Not commonly used, the point is not accurate enough. Usually used in general trends. Also known as the golden section, 23.6%, 38.2%, 50%, 61.8%, and 78.6% can be regarded as pressure levels or support levels. The two lines with the most reference value are 38.2% and 61.8%.

In the falling market, the highest rebound position is 61.8%, and the price at this position is an important pressure position. Under normal circumstances, it will not exceed the 61.8% position. When it reaches the 61.8 position, it will continue to fall or move sideways or fluctuate. If it breaks through the 61.8% position, the price will change and become an upward trend, and this position will become an important support level. The same is true in an upward trend. If it falls below the 61.8% position, it means a downward trend.

5. Trend line: (Currency market tactics, the drawing and function of trend lines - )

Not commonly used, suitable for long-term or medium-term trends, not accurate. It is clearer to use naked K when drawing trend lines.

The supporting role of the rising trend line: When the price pulls back in the rising market, as long as it does not fall below the rising trend line, it means that the market continues to rise. If the volume falls below the trend line, it means that the upward trend has ended and the market will move sideways. or fall.

The effect of downward trend line pressure: When the price rebounds in a falling market, as long as it does not break through the downward trend line, it means that the market will continue to fall. If the volume breaks through the downward trend line, it means that the falling market has ended and the market will go sideways. or rise.

6. The pressure and support in the Boll line: (Currency market technical analysis Bollinger line (Boll) - )

The upper rail and the middle rail have a pressure effect, and the middle rail and the lower rail have a pressure effect. The middle rail acts as a support. When the price moves below the middle rail, the middle rail acts as a pressure line. When the price moves above the middle rail, the middle rail acts as a support line.

The upward-sloping mid-rail support line has the best support effect. The horizontal support line may be crossed repeatedly, and the downward support effect is weak. In turn, when it becomes a pressure line indicator, the effect is opposite.

7. K-line pattern of flat top and flat bottom:

A flat top is formed during the rise, and short-term pressure level will be formed if it does not break through.

A flat bottom is formed during the decline, and short-term support will be formed if it does not fall below.

Mastering the first three methods is more practical and commonly used. Especially the chip-intensive area. In actual application of these three methods, whichever one is closest to the current price will be the primary support pressure point.

(For example: a currency, the current price is 1 yuan, during the rise, the 5-day moving average shows that the pressure level is 1.5 yuan, but the lower edge of the K-line with heavy volume decline shows that the pressure level is 1.2 yuan. Then The first pressure level is 1.2 yuan)

2. Determine the strength of the support and pressure levels:

Generally based on: the length of stay, the size of the trading volume, and the distance from the current time. , multiple verifications and other aspects of judgment.

1. The length of time the currency price stays in this area: If the pressure at a position cannot be overcome for a long time or the support level cannot be broken for a long time, the longer the time, the more unsuccessful attempts to break through or fall below. The stronger the support or pressure level at this position.

2. Judge the strength of the support level from the trading volume at the support or pressure position: when accompanied by larger trading volume, the strength of the support or pressure is greater.

3. The distance between the pressure and support formed before and the current time: the strength formed recently is relatively strong.

4. The moving average has different pressure and support strengths depending on the length of time. The pressure and support strength of the short-term moving average is lower, while the support and pressure of the long-term moving average are stronger.

5. If multiple indicators verify a support level or pressure level at the same time, it will be more accurate and its strength will be greater. As shown in the figure: the 10-day moving average and the upper edge of the heavy-volume rising K-line combine to verify a support platform, forming a strong support point, around 4250.

3. Practical application of buying and selling:

Support levels and pressure levels can help us better judge the subsequent market trend, and can also be used as a reference for buying or selling. Based on this, especially for short-term traders, support and pressure levels are almost one of the lessons that must be learned.

1. When the market continues to rise, buy when the price pulls back to the support level and do not chase the rise.

2. When the market fails to rise, reduce positions at pressure levels or flee with profits.

3. When the market continues to fall, the price rebounds to the pressure level, which is the opportunity to reduce positions.

4. When the currency price cannot fall below the support level, build a buying position, and when the currency price falls below the support level, sell and stop loss.

5. When the currency price cannot break through the pressure level, sell to take profit, and when the currency price breaks through the pressure level, buy on a position-by-position basis.

All support levels and pressure levels are only for reference. Operations need to combine technical aspects, fundamental aspects, news aspects and other complex factors. We must also pay attention to the market environment and constantly search and practice in actual combat. Summarize.