Support

Definition:

A historically significant price level that price action has had a difficult time trading below.

Background:

If price action drops and approaches a confirmed support level, a "re-test" of Support occurs and it can be either confirmed again or broken.

A test at Support is confirmed if a bullish change in the market sentiment occurs at the support level.

Support is broken when the bearish market sentiment does not change at the support level and price action continues down through the support level.

Practical Use:

Traders often use Support levels as potential buying areas or regions to simply avoid "selling short" into. This can be very helpful in the "timing" of entering or exiting trades.