supportniveaus

Supportniveaus, Dutch for "support levels," are price levels in financial markets where a downtrend is expected to pause because demand increases sufficiently to absorb selling pressure. They are used in technical analysis to identify where a security might find a floor and reverse or stall.

These levels arise from various sources: round-number psychology, previous lows, historic price clusters, or areas of high trading volume where large buyers may enter. They can be observed on price charts as horizontal lines, trendline intersections, or zones rather than single points.

Common methods to identify them include horizontal support lines anchored to past troughs, moving average confluence (for example, the 50-day or 200-day moving average acting as dynamic support), Fibonacci retracements, and pivot points. Volume analysis and order-book structure can also indicate where bids accumulate.

In price action, approaching supportniveaus often results in a bounce or consolidation as demand absorbs supply. The level is more reliable if it is tested multiple times; however, false breaks occur, especially in low-liquidity conditions or after major news. If a supportniveaus is decisively breached, it can become a resistance level or indicate a shift in market regime, with the previous floor acting as a ceiling.

Traders use supportniveaus for entry ideas, stop-loss placement, and risk management. They are not guarantees, and their significance depends on time frame, liquidity, and broader market context.