What Is a Zone of Support?

In the securities market, after the market price rises for a period of time, it falls. When it reaches a certain price, it encounters a strong purchase, preventing the stock price from falling again, and even reversing, which makes the stock price rise again. If this situation occurs repeatedly several times, and each time the market price drops to the same level and rises, it means that the level has "support", and the level becomes the "support level" or "Support zone".

Support area

Right!

In the securities market, after the market price rises for a period of time, it falls. When it reaches a certain price, it encounters a strong purchase, preventing the stock price from falling again, and even reversing, which makes the stock price rise again. If this situation occurs repeatedly several times, and each time the market price drops to the same level and rises, it means that the level has "support", and the level becomes the "support level" or "Support zone".