A very important aspect of technical trading is the support level. The Q Profit System review and the other algo-trading software put a lot of focus on the support levels.
Support is where the price of the asset that you are trading in gets support. This means that it is the price point where the demand for the asset is high and thus the probability of the asset price rising from the price point is high. It is very likely that when the price of the asset comes back to the line of support, it will rise up from there. It is very important to note that the support price level will always be below the current market price of the asset that you are trading in.
Most of the times you would observe the price fall to the level of the support, consolidate for some time to absorb all the demand that is available in the market and then start to move up. When you trade using the robotic trading software the algorithm designed in it looks for the high probability support levels on the technical chart. This is where the asset should be bought. As soon as the asset price falls to the price point of the support, the robotic trading software buys it for you. Support is thus an important price and this is where the algorithm creates a trigger to buy the asset.
Support is where the buying pressure starts to build. The higher is the buying pressure the further the price of the asset will move upward from the price point. The support is also the price point where a short seller in the market will look to exit the trade. A short seller is one who sells first at the resistance point and then buys back the asset at the support level.
The support and the resistance levels are the lines that give an indication that the price may rise or fall from that level. However, these price levels are not the only deciding factor to enter or exit a trade. When you buy in a support level the probability of the trade working out in your favour is high.
Technical analysis believes that history tends to repeat itself. The support is nothing but a price point from where the stock price had rallied in the past and thus if technical analysis is to be believed then when the price of the stock will come to that level again it will tend to start rising again.