Chart Patterns
Support
A price level where buying pressure prevents further decline.
Full Definition
Support is a price level where an asset tends to find buying interest, preventing the price from falling further. It represents a concentration of demand. Support levels are identified by looking at historical price action where price has bounced multiple times. When support breaks, it often becomes resistance.
Example
EUR/USD has bounced off 1.0800 three times in the past month. This makes 1.0800 a strong support level. Traders might buy near this level expecting another bounce, with stop losses just below.
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