SUPPORT
Support levels are levels where a declining stock will find the bottom and bounce up. Supports are formed when a stock breaks above resistance and holds above that level: the old resistance then becomes support. Support levels are also formed when a stock spends a lot of time at one level and then breaks upward.
The support level is also called the Demand zone. The time frame may be changed to a 5-minute time frame for Intraday, a 15-minute and 1-hour time frame for a swing trade and 1day time frame for short-term & long-term delivery.
You can see this in the below image
In the above chart, you can see the market was in a downtrend and a bullish engulfing pattern formed at the bottom level & bounced back. Again market fell from the resistance zone & took support at the previous support zone or demand zone and bounced back from the bottom level.
(Before reading the chart pattern, read the candlestick pattern once so that the chart pattern can be understood clearly)
What should be the stop loss and target in the support zone?
For better profit, you have to wait till the support level, if the market falls from the top level or resistance level to the bottom level or previous support or demand zone, a bullish candlestick should be formed for better confirmation. Once a bullish candlestick pattern is formed at a support level, you have to enter the above next candle (Entry price for a long position), and stop loss should be below the Support level. For target you can set the target of the previous high or resistance level in swing trading and Intraday you can take profit as per market condition.