Support Level

A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a time period being considered. This can occur over any period, be it daily, hourly, etc.A support line can be either flat or skewed up or down relative to the overall price trend. Looking deeper, other technical indicators and charting techniques can be used to identify more advanced versions of support.Support levels differ from resistance, which illustrate the opposite direction of price movements.Understanding Support LevelsWhen the price of an asset falls towards a defined support level, the asset can either hold at this level or fall further. In this case, additional supports must be identified to compensate for a breach or decline.Support levels in many assets can be created by limit orders or simply the market action of traders and investors.Traders can rely on support levels to plan either entry and exit points for trades, as well as crafting more detailed trading strategies. For example, if the price action on a chart falls below a support level, it is seen as an opportunity to buy or take a short position. Additionally, if this breach of the support level occurs during uptrend, it may possibly be a sign of a reversal and strength.
A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a time period being considered. This can occur over any period, be it daily, hourly, etc.A support line can be either flat or skewed up or down relative to the overall price trend. Looking deeper, other technical indicators and charting techniques can be used to identify more advanced versions of support.Support levels differ from resistance, which illustrate the opposite direction of price movements.Understanding Support LevelsWhen the price of an asset falls towards a defined support level, the asset can either hold at this level or fall further. In this case, additional supports must be identified to compensate for a breach or decline.Support levels in many assets can be created by limit orders or simply the market action of traders and investors.Traders can rely on support levels to plan either entry and exit points for trades, as well as crafting more detailed trading strategies. For example, if the price action on a chart falls below a support level, it is seen as an opportunity to buy or take a short position. Additionally, if this breach of the support level occurs during uptrend, it may possibly be a sign of a reversal and strength.

A trading support or support level represents a given price that acts as a temporary barrier for an asset.

In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.

All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price.

Basic support levels can be calculated and charted by identifying the lowest lows for a time period being considered. This can occur over any period, be it daily, hourly, etc.

A support line can be either flat or skewed up or down relative to the overall price trend.

Looking deeper, other technical indicators and charting techniques can be used to identify more advanced versions of support.

Support levels differ from resistance, which illustrate the opposite direction of price movements.

Understanding Support Levels

When the price of an asset falls towards a defined support level, the asset can either hold at this level or fall further.

In this case, additional supports must be identified to compensate for a breach or decline.

Support levels in many assets can be created by limit orders or simply the market action of traders and investors.

Traders can rely on support levels to plan either entry and exit points for trades, as well as crafting more detailed trading strategies.

For example, if the price action on a chart falls below a support level, it is seen as an opportunity to buy or take a short position.

Additionally, if this breach of the support level occurs during uptrend, it may possibly be a sign of a reversal and strength.

Technical Analysis

USDCHF up for the 6th week in a row

USDCHF

USDCHF up for the 6th week in a row

  • The USDCHF is up 853 pips from the most recent low
Greg Michalowski
Greg Michalowski
Friday, 13/05/2022 | 18:28 GMT-0
13/05/2022 | 18:28 GMT-0
Technical Analysis

GBPUSD breaks back above its 100 hour moving average. Buyers take their shot.

GBPUSD

GBPUSD breaks back above its 100 hour moving average. Buyers take their shot.

  • GBPUSD 100 hour moving average 1.30285
Greg Michalowski
Greg Michalowski
Wednesday, 13/04/2022 | 15:10 GMT-0
13/04/2022 | 15:10 GMT-0
Technical Analysis

AUDUSD holds above 38.2% retracement but continues to knock on supports door

AUDUSD

AUDUSD holds above 38.2% retracement but continues to knock on supports door

  • 38.2% at 0.74712
Greg Michalowski
Greg Michalowski
Thursday, 07/04/2022 | 15:00 GMT-0
07/04/2022 | 15:00 GMT-0
Technical Analysis

GBPUSD went to the edge of topside resistance and found willing sellers

GBPUSD

GBPUSD went to the edge of topside resistance and found willing sellers

  • The swing area and 100 hour MA stalled the rally today
Greg Michalowski
Greg Michalowski
Tuesday, 15/03/2022 | 19:33 GMT-0
15/03/2022 | 19:33 GMT-0
Technical Analysis

EURUSD remains relatively contained although higher on the day

EUR

EURUSD remains relatively contained although higher on the day

  • Price is trying to stay above its 100 hour moving average after bouncing off retracement support earlier in the day
Greg Michalowski
Greg Michalowski
Wednesday, 09/02/2022 | 13:43 GMT-0
09/02/2022 | 13:43 GMT-0