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Support 1

Support 1

Support 1 (S1) is the first support level below the pivot point, calculated from the previous period's price range. It marks a potential area where buying interest may increase.

Support 1 (S1) is the first support level calculated from pivot point analysis, representing a potential price floor below the central pivot point. When price declines from the pivot, S1 is the first level where buying pressure may emerge to halt the decline. As a widely watched level, S1 often sees increased trading activity and potential reversals.

The calculation:

Support 1 (S1) = (2 × Pivot Point) - Previous High

Example:

Previous High: $55
Previous Low: $45
Previous Close: $50
Pivot Point: ($55 + $45 + $50) / 3 = $50
S1: (2 × $50) - $55 = $45

Why S1 matters:

  • First support level: Initial level where decline may stall
  • Widely watched: Many traders monitor and trade around S1
  • Entry zone: Potential long entry point for bounces
  • Breakdown level: Break below S1 signals weakness toward S2

Interpreting price action at S1:

  • Bounce at S1: Support holding; potential long entry
  • Break below S1: Support failed; price may test S2
  • Multiple tests: Repeated tests weaken support
  • Volume at S1: High volume increases significance of reaction

Trading applications:

  • Long entries: Buy bounces off S1 with stops below
  • Short targets: Use S1 as profit target for shorts from above
  • Breakdown trades: Short when S1 breaks with confirmation
  • Risk management: Place stops just below S1 for longs

S1 in context:

  • Above pivot: Market bullish; S1 unlikely to be tested
  • Between pivot and S1: Mild bearish; S1 test possible
  • Below S1: Bearish; next target is S2

Combining with other analysis:

  • Confluence: S1 at moving average increases significance
  • Trend filter: Trade S1 bounces only in uptrends
  • Volume confirmation: Watch for volume spike at S1 test
  • Candlestick patterns: Look for reversal patterns at S1

Limitations:

  • Not guaranteed: Support can fail, especially in strong downtrends
  • Approximate level: Price may reverse near S1, not exactly at it
  • Context matters: Less effective against strong trends

S1 provides traders with the first objective support level for the session. Its effectiveness comes from both technical significance and the self-fulfilling nature of many traders watching the same level.