What Is Support Level In A Trading Vehicle?

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What is support level in a trading vehicle?

A designated price point on a chart (any timeframe), below its current price, that limits the decline in the desired issue over a defined period of time. The more times a designated level is revisited, the more validity is attached to it.

Related Link: What Is A Resistance Level In A Trading Vehicle?

How do you use a support level?

Support levels can used in a few different ways. It can be used to enter a long position for a particular issue, assuming the issue will rebound off the designated support level. It can be used to cover a previously initiated short position.

When a support level is breached, it may provide temporary resistance as it finds a new support level and begins to rally.

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