What are valid support and invalid support?

1. Confirmation signal of effective support
(1) Trend Reversal Confirmation: During the pullback process of an uptrend, if the bearish candlestick body is significantly smaller than the previous bullish candlestick, especially when it approaches a key support level with a noticeable reduction in trading volume, and is followed by a bullish engulfing pattern accompanied by a price rebound, it can be identified as effective support.
(2) Consolidation Breakthrough: When the price forms a horizontal consolidation pattern in the support area, if a strong bullish breakout occurs after sufficient consolidation, it validates the effectiveness of the support.
(3) False Breakout Confirmation Type: If the price tests the support level and does not form an effective breakdown, combined with a significant increase in volume during the rebound, it can confirm the validity of the support.

2. Warning signals of support failure
(1) Weak rebound warning: If a bearish candlestick with increasing momentum appears during a pullback in an upward trend, even if a technical rebound occurs near the support level, the rebound strength is obviously insufficient and the volume shrinks, indicating that the support may fail.
(2) Confirmation of Breakdown Pattern: If the consolidation platform formed in the support area ultimately breaks down with a strong long bearish candle, it usually triggers a surge of stop-loss orders, resulting in a situation where many sell out, confirming the failure of support.
(3) Trend reversal signal: When the price breaks through important support levels with significant volume, it often indicates a trend reversal, where the original support becomes a new resistance level. #特朗普数字资产峰会发言 #SIREN Launchpool 开启 #XRP资产超越空客 #BTC