Technical Glossary / Support, Resistance & Price Levels

Support

A price area where declines have stalled because demand showed up.

Support

Teaching sketch. It shows the shape, not a live quote and not a trade signal.

Definition

Support is a price where buying has been strong enough to stop or reverse a decline. It can be a prior low, a base, a moving average, or a round number. It is an area of demand observed in the past, not a floor installed in the market.

How to identify it

Look for at least two reactions from the same area: wicks into a zone and closes back above it. A single low is a pivot. Support is a pivot the market has respected more than once, or a level so obvious that the first retest matters.

Bullish reading

In an uptrend, support holding on a pullback is the long location. Risk goes beyond the zone, not a single tick under a wick you hope was the low.

Bearish reading

A close through support turns it into a possible resistance on the way back. That flip is role reversal. Until the close happens, a wick through support is a test, not a break.

Common mistakes

Drawing support as a razor line and treating a one-tick pierce as a breakdown. Also moving the line after the trade so that it still "held."

Limitations

Support holds until it does not. The more public the level, the more stops sit under it, and the more likely a sweep before a real hold or a real break.

This note explains the term. A sketch shows the shape of the idea. Neither is a recommendation, a signal, or a comment on any security. Indicator settings and exchange conventions differ. Check the live chart and the contract specification before you use a number.