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

Stocks take another run to the downside

S&P

Stocks take another run to the downside

  • NASDAQ now down over 400 points. Dow down over 700 points. S&P tests 4000.
Greg Michalowski
Greg Michalowski
Tuesday, 13/09/2022 | 14:14 GMT-0
13/09/2022 | 14:14 GMT-0
Technical Analysis

The AUD is the strongest and the EUR is the weakest to start the NA session

Forex

The AUD is the strongest and the EUR is the weakest to start the NA session

  • The USD is mixed
Greg Michalowski
Greg Michalowski
Monday, 22/08/2022 | 12:24 GMT-0
22/08/2022 | 12:24 GMT-0
Technical Analysis

USDCAD moves toward 100 day MA after better CPI data

USDCAD

USDCAD moves toward 100 day MA after better CPI data

  • Risk on flows leading to flows out of the USD into risk pairs
Greg Michalowski
Greg Michalowski
Wednesday, 10/08/2022 | 14:07 GMT-0
10/08/2022 | 14:07 GMT-0
News

USD/JPY has been losing ground Monday in Asia trade, plunging towards 132.00

USD/JPY has been losing ground Monday in Asia trade, plunging towards 132.00

Eamonn Sheridan
Eamonn Sheridan
Monday, 01/08/2022 | 01:19 GMT-0
01/08/2022 | 01:19 GMT-0
News

It is shaping up to be another stinging day for oil

It is shaping up to be another stinging day for oil

  • WTI crude down over 4% on the day
Justin Low
Justin Low
Thursday, 21/07/2022 | 09:12 GMT-0
21/07/2022 | 09:12 GMT-0
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