<p>Support, in the realm of technical analysis, is a price level at which an asset's demand increases, causing the price to stabilize or reverse its downward trajectory. It signifies a potential buying interest, as traders look to enter long positions or protect their profits.</p>

<h2>How It Works</h2>
<p>Support levels are determined by identifying previous price lows or areas of significant demand. These can be found using various technical indicators and chart patterns. Here's a simple way to identify support:</p>
<ul>
  <li>Locate the price points where the asset's decline was halted or slowed down.</li>
  <li>Draw horizontal lines at these price points to establish potential support levels.</li>
  <li>Confirm these levels using other technical indicators or chart patterns for stronger signals.</li>
</ul>
<p>On the <strong>MetaTrader 5</strong> platform, you can easily draw horizontal lines and apply indicators to help identify support levels.</p>

<h2>Why It Matters for Traders</h2>
<p>Support levels are crucial for traders as they:</p>
<ul>
  <li>Help in setting stop-loss orders, as they indicate where a trade might be invalidated.</li>
  <li>Provide entry points for long positions, as a break below support could signal a trend reversal.</li>
  <li>Assist in setting profit targets, as a move back to the support level could indicate a good take-profit opportunity.</li>
</ul>

<h2>Example</h2>
<p>Let's consider EUR/USD on the daily chart. The price has been ranging between 1.1000 and 1.1500. The lower boundary, 1.1000, has acted as a support level on multiple occasions. A trader might set a long position order at 1.1000, with a stop-loss below the recent low, and a profit target at the upper boundary of the range, 1.1500.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>Support levels indicate potential buying interest and price stabilization.</li>
  <li>They are identified by drawing horizontal lines at previous price lows or areas of significant demand.</li>
  <li>Traders use support levels to set stop-loss orders, entry points, and profit targets.</li>
  <li>Support levels can be confirmed using other technical indicators and chart patterns.</li>
</ul>