What is Support?
Definition of Support: It is an expression used in the technical analysis to explain the cost level in the stock, currency or commodity where the purchasing pressure for an asset crosses the selling pressure that forms the floor that blocks the movements of the future cost in a downward direction. Resistance is the conflicting of support. In the same manner, it is considered as the level where the pressure of selling starts exceeding purchasing pressure, therefore establishing a ceiling over which the costs will not increase. The analysts have created several tools for ascertaining the levels as they show a perfect entry and outlet points that the trader uses to his benefit. Most of the traders depend on different wave theories that show the different levels at different points on the costing chart of the money. The proponents of Elliott theory use the retarcement ration, depending on the Fibonacci interval for finding the repeated projections for support and resistance. Forex trader places different orders depending on the cost forecasts to gain profit from the expectation.