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Glossary


Support

In technical analysis, Support is a price area where new buying is likely to come in and stem any decline. Support is opposite to resistance that defines the price area at the top of an up-trend trend.

See Also:

Resistance: In technical analysis, Resistance is a price area where new selling will emerge to dampen a continued rise. Support, in opposite to resistance is the price area where buying overcome selling and price starts to recover after being in decline.

Technical Analysis: Technical Analysis (in opposite to fundamental analysis) is an approach to forecasting commodity prices that examines patterns of price change, rates of change, and changes in volume of trading and open interest, without regard to underlying fundamental market factors. Technical analysis can work consistently only if the theory that price movements are a random walk is incorrect.

Trend: Trend is the general direction, either upward or downward, in which prices have been moving.


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Risk Statement:

Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.

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