Support
A price level where buying pressure has historically halted or reversed a downward move.
Support is a horizontal (or near-horizontal) price zone where demand has repeatedly overcome supply, preventing price from falling further. The more times a level has held, the more significant it becomes — until it doesn't.
Support flips to resistance once decisively broken. Traders watch for confluent support: the same level confirmed by prior swing lows, a moving average, or a high-volume node.
- Stronger with more prior touches and higher volume at those touches.
- Round numbers often act as psychological support (e.g. $100, $1 000).
- Always treat as a zone, not a single tick.
Example
SPY forms a swing low at $520 in April, bounces, pulls back to $520 again in May, and holds a second time. That $520 zone is confirmed support. A trader looking to go long targets entries near $520 with a stop below $517.
Related Terms
Breakdown
Price moving decisively below key support, signalling that sellers have overwhelmed buyers at that level.
BeginnerBreakout
Price moving decisively above a key resistance level or the top of a range, often on expanding volume.
BeginnerChannel
Two parallel trendlines containing price action — an upper resistance line and a lower support line defining the trend's corridor.
BeginnerConfluence
The overlap of two or more independent technical signals at the same price level, strengthening the case for a trade.
IntermediateFibonacci Retracement
Horizontal levels derived from Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, 78.6%) that highlight potential pullback support or resistance zones.
IntermediateGap
A price jump between one period's close and the next period's open, leaving a void on the chart with no trades executed.
IntermediatePivot Point
A calculated average of the prior period's high, low, and close used as a benchmark level for the current session.
IntermediatePrice Action
The study of raw price movement — candlestick patterns, swings, and structure — without relying on lagging indicators.
BeginnerPullback
A temporary counter-trend retracement within an ongoing trend, offering a lower-risk entry in the direction of the trend.
BeginnerRange
A sideways price structure bounded by identifiable support and resistance where neither buyers nor sellers dominate.
BeginnerResistance
A price level where selling pressure has historically halted or reversed an upward move.
BeginnerSwing Low
A candle or bar whose low is lower than both the preceding and the following candle's lows — a local price trough.
BeginnerTrendline
A straight line drawn through successive swing highs (downtrend) or swing lows (uptrend) to visualise the trend's slope.
BeginnerVolume Profile
A histogram of traded volume at each price level over a period, revealing where the market has done the most and least business.
AdvancedVWAP
The average price weighted by volume traded throughout the session — the institutional benchmark for execution quality.
Intermediate