What is the support bounce pattern?
The support bounce is a bullish breakout pattern. Price returns to a level that has held before and turns away from it again.
How does the support bounce form?
Price returns to a level that has held before and turns away from it again, without closing through.
How do you confirm a support bounce?
A level is only support until it isn't. What decides it is whether buyers show up before the close, not whether the wick dipped through.
When does the support bounce fail?
Each successive test weakens the level. The third or fourth bounce is usually the one that goes through.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the support bounce, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a support bounce. Where did price go next?
