Technical

Support

A price level where buying pressure tends to overcome selling pressure, preventing further price declines.

Definition

Support is a price level where demand is strong enough to prevent price from declining further. Buyers step in at support, creating a "floor" where price tends to bounce. Breaking support can signal further declines.

How It Works

Price approaches support level
Buyers enter, creating demand
Price bounces or consolidates
Break below = potential further decline

Types of Support

Horizontal Support

Previous lows, round numbers

Trend Line Support

Rising support in uptrends

Moving Average Support

Price bouncing off MAs

Trading Tips

Place stop loss below support when going long

Broken support can become resistance

Look for confluence of multiple support levels

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