Support
A price level where a market tends to encounter buying pressure and struggles to fall below, formed when buyers repeatedly step in at the same point. Technical analysts chart support alongside resistance to understand market trends and identify potential reversal points.
Related terms
Resistance
A price level where a market tends to encounter selling pressure and struggles to rise above, formed when more traders repeatedly sell than buy at that point. Identified through technical analysis, resistance levels mark potential reversal points.
Read full definitionLevel
A price zone or particular price that is significant from a technical standpoint or based on reported orders or option interest.
Read full definitionTrend
Price movement that produces a net change in value: an uptrend shows higher highs and higher lows, a downtrend lower highs and lower lows.
Read full definitionMore in Technical Analysis
Bar Chart
A chart type built from four significant points: the high and low prices, which form the vertical bar; the opening price, marked with a horizontal line to the left of the bar; and the closing price, marked with a horizontal line to the right.
Read full definitionBasing
A chart pattern showing when demand and supply of a product are almost equal, resulting in a narrow trading range and the merging of support and resistance levels.
Read full definitionBollinger Bands
A technical analysis tool consisting of a band plotted two standard deviations either side of a simple moving average, used to find support and resistance levels.
Read full definitionCandlestick Chart
A chart type used to analyse a market’s price. Unlike bar charts, candlestick charts show the market’s high, low, open and closing price within each period.
Read full definitionChartist
A trader who analyses a market’s price history to determine future price trends, using a range of analytical tools and indicators to conduct technical analysis on a price chart.
Read full definitionConsolidation
A period of range-bound activity after an extended price move, in which a market neither continues nor counters the longer-term trend.
Read full definitionWant this applied to your business?
Our specialists turn Technical Analysis concepts into a practical strategy.