Support

Support is a price level where buying pressure has historically been strong enough to halt downward movement. It's the floor that price bounces off of — each time price dips to that level, buyers step in and push it back up. Stronger support levels have been tested multiple times without breaking.

Support forms for practical reasons: institutional traders have buy orders clustered at certain levels, previous lows attract bargain hunters, and round numbers (1.0000, 150.00) act as psychological barriers. When you see price bouncing off the same level three or four times, it's a well-established support zone.

When support eventually breaks (and it always does eventually), it often becomes resistance. This "polarity flip" is one of the most reliable concepts in technical analysis. A level that buyers previously defended becomes one that sellers defend after the break. This happens because traders who bought at support and are now underwater tend to sell to break even when price returns to that level.