Sindex AIWhat is the Support Level?
Support is a price area where buying has previously overwhelmed selling and pushed the market back up. Traders mark it using prior lows, and the assumption is that participants who bought there before, or who missed the earlier bounce, will defend the level again. A support bounce strategy waits for price to return to the level and show evidence that buyers are stepping in.
In crypto futures, support levels attract attention because they are where stop losses and liquidation clusters concentrate. A clean bounce from a well-defined low can offer a tight-stop, favourable-reward trade, while a failure through the level turns quickly into a breakdown. Knowing exactly where the level is and demanding confirmation is what separates the two.
How the Support Level works
Sindex defines support mechanically as the lowest low of the last 50 candles on the selected timeframe. It then measures how far the current close sits from that level as a percentage. A symbol qualifies when the close is between 0.5 percent below and 1.5 percent above the support level, so price is either resting on it or has slightly undercut it.
The second condition is a bounce: the current candle must be bullish, closing above its open. This filters out symbols that are sliding through support and only surfaces those printing a buying response at the level. The score blends proximity, which favours closes right at the level, with the size of the bullish candle body, and is floored at 50.
The strategy needs 50 candles, so it runs on all six scanner timeframes. On 15m the support is effectively the low of the last half day; on 1d it is the low of the last seven weeks. Choose the timeframe that matches the horizon of the trade you intend to hold.
Rules
Entry rules
- Confirm price is within roughly 1.5 percent above, or 0.5 percent below, the 50-candle low.
- Require a bullish candle at the level, ideally with a long lower wick showing rejection of lower prices.
- Check whether the level lines up with support on a higher timeframe or with a prior breakout point; confluence improves the odds.
- Enter on the close of the bullish candle or on a retest of the level that holds within the next few bars.
Exit rules
- Stop just below the support low, allowing a small buffer for wicks.
- First target at the midpoint of the recent range; second target at the recent high or at resistance.
- A close clearly below the support level invalidates the bounce.
- If price returns to the level a third or fourth time, the support is weakening and the trade should be reduced.
Best conditions
- When the higher-timeframe trend is up and the support test is a pullback.
- When the level has been tested only once or twice, so it is still fresh.
- When the bounce candle shows a volume increase, indicating real absorption of selling.
- On 4h to daily charts where the 50-candle low represents a meaningful swing.
Pitfalls
- A support level that has been hit repeatedly is more likely to break than to hold.
- In a strong downtrend, each bounce from a new 50-candle low is usually brief.
- Wicks below support that trigger stops before the bounce are common in crypto; too tight a stop gets hunted.
- Risk reminder: buying support with high leverage means a single break of the level can liquidate the position; size accordingly.
Support Level FAQ
- How does Sindex calculate the support level?
- It takes the lowest low of the last 50 candles on the chosen timeframe, then checks that the current close is within 0.5 percent below to 1.5 percent above that low and that the current candle is bullish.
- Is a support bounce a reversal strategy?
- It can be either a pullback entry in an uptrend or a counter-trend bounce in a downtrend. The first is generally higher probability, so always check the larger trend before buying support.
- Where should the stop go on a support trade?
- Just below the support low with a buffer for wicks. If the level breaks, the reason for the trade is gone and the position should be closed.