What are “support levels” in trading?

    support level is a price at which buyers enter the market in such sufficient quantities that it halts the price movement. When observing this on a price chart, it will appear as a horizontal line where the price seems to reverse to the upside.

    Together with resistance, support levels form one of the most elementary concepts in chart analysis.

    At tradimo, support levels are usually visible as red lines in illustrations and screenshots. The chart below shows an example where the price reaches the same level multiple times and a support line is established.


    Please note that besides the horizontal support levels, trend lines and channels can also have the same effect: defining price points where buyers are likely to enter the market.

    Learn more about using support levels in trading: