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Support

Discussion in 'Traders Glossary' started by Pharaoh, Mar 16, 2010.

  1. Pharaoh

    Pharaoh Colonel

    Joined:
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    Support is a price level (often an area, not an EXACT price) that traders tend to buy at. This often prevents price from falling below this level, thus creating a "floor" below which the price has difficulty moving.

    Note that support can be defined by a horizontal or slanted line. The more times price tests and fails to break through (or close beyond) support, the stronger the support level is considered to be.

    See Resistance.
     

Y

y/y

Z

ZEW

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