Trends/Support and resistance

Horizontal support

A flat price level where falls have repeatedly stopped and turned back up.

Support and resistanceBest on 3M, 6M, 1YAlso called floor, demand level

Illustration of the horizontal support shape. It is a sketch, not real price data.

What it shows

Support is a price where buyers have stepped in before. On a chart it shows up as several swing lows at about the same price. A flat line through them is a horizontal support level.

The line does not say price will stop there again. It marks where it has stopped before. The more times it held, the more traders tend to watch it.

How we find it

The same code that draws it on your chart follows these steps, with the same result every time.

Find swing lows.
Group lows that are within the tolerance of each other.
Keep groups with at least 2 lows that are at least 5 bars apart.
Draw the level at the average price of the group.

Starting values: Tolerance 1.5% of price; Minimum touches 2; Minimum bars between touches 5. These are proposed and will be tuned on real price data before launch.

How to read it

Each dot is a low that turned back up at the level.
The more dots and the farther apart they are, the more established the level is.
Price above the level means it still acts as a floor so far.

Status labels you may see

Label	What it means
Above support	The last close is above the level.
Testing support	The last close is within 2% of the level.
Closed below support	The last close is under the level.

What cancels it

A close below the level by more than the margin. After that it has been broken.

What traders check next

How many times it held and how long ago the last touch was.
Whether each bounce was bigger or smaller than the one before.
Volume near the level.

Limits

The tolerance changes which lows count as the same.
Levels can break without any warning.
Old levels can lose meaning.

Try it in forecastviz

Open any ticker and choose Support and resistance → Horizontal support in the left menu.
Switch between 3M, 6M, 1Y to see how the picture changes.
Compare with Horizontal resistance and Support and resistance zones on the same chart.

Open on a ticker

Questions

Is support exact?

No. It is a zone in practice. We draw a line at the average of the lows so you have one clear number.

What happens if it breaks?

The level is marked broken. A broken support is often watched as a possible resistance, which is called role reversal.