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Posted On: 04/27/2012 11:19:45 PM
Post# of 1188
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Posted By: Chasing Stars

Support


Support is defined as a price level at which there would be sufficient buy orders to slow or even reverse a downward price movement. Support levels are found by examining previous price movements and the levels at which prices tend to congregate. Studies have shown that price congestion tends to occur in ranges and key levels of technical support and resistance can be derived when a suitable time period of prices is studied.


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