Support
Support is a term used in the financial world to describe a situation in which the price of a security or asset is held steady or increases. It is the opposite of resistance, which is when the price of a security or asset decreases. Support is an important concept in technical analysis, which is the study of past price movements to predict future price movements. Support levels are used to identify potential buying opportunities and to set stop-loss orders.
History of Support
The concept of support and resistance has been around since the early days of trading. It was first used by traders to identify areas where the price of a security or asset was likely to find support or resistance. Over time, traders have developed more sophisticated methods of identifying support and resistance levels, such as using trend lines, Fibonacci retracements, and other technical indicators. Today, support and resistance levels are widely used by traders to identify potential buying and selling opportunities.
Comparison Table
| Term | Definition |
|---|---|
| Support | A situation in which the price of a security or asset is held steady or increases. |
| Resistance | A situation in which the price of a security or asset decreases. |
| Technical Analysis | The study of past price movements to predict future price movements. |
| Support Levels | Used to identify potential buying opportunities and to set stop-loss orders. |
Summary
Support is an important concept in the financial world, used to identify potential buying opportunities and to set stop-loss orders. It is the opposite of resistance, which is when the price of a security or asset decreases. Support and resistance levels are widely used by traders to identify potential buying and selling opportunities. For more information about support and resistance levels, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Resistance
- Technical Analysis
- Trend Lines
- Fibonacci Retracements
- Technical Indicators
- Stop-Loss Orders
- Price Action
- Support and Resistance Levels
- Price Targets
- Breakouts
