Community Forex Questions
What is support level?
A support level is a price at which an asset may struggle to fall as traders look to buy around that level.
Typically, markets are unwilling to allow an asset to fall below its support level, with buyers stepping in to raise the asset's price. As a result, they are the inverse of resistance levels: the point at which markets refuse to allow an asset's price to rise any further.
If an asset falls below its support level, it is either wiped out (and a new support level must be identified) or reconfirmed (if many traders buy the asset).
Typically, markets are unwilling to allow an asset to fall below its support level, with buyers stepping in to raise the asset's price. As a result, they are the inverse of resistance levels: the point at which markets refuse to allow an asset's price to rise any further.
If an asset falls below its support level, it is either wiped out (and a new support level must be identified) or reconfirmed (if many traders buy the asset).
Oct 06, 2022 23:16