Support

Support represents a price level where a downtrend is expected to pause or reverse due to concentration of demand. Support levels form at previous lows, psychological numbers, moving averages, or technical indicators. When price approaches support, buyers often emerge, creating a floor. Strong support is tested multiple times without breaking. If support breaks with volume, it often becomes resistance. Traders use support for entry points in uptrends, stop loss placement below support, and bounce trades. The reliability of support depends on timeframe, volume at that level, and number of touches.