Preliminary Support (PS)
Volume Price Analysis glossary · Volume Price Analysis
Definition
First sign that selling pressure may be slowing during a downtrend; usually shown by widening spreads and increased volume at the lows but no immediate reversal.
Preliminary Support (PS) in plain English
Picture a price falling for a while — sellers clearly in charge. Preliminary Support is the FIRST hint that the big, informed buyers are quietly starting to step in and catch some of that falling stock, even though the price hasn't turned up yet. You'll notice bars that swing wider than usual with a jump in volume down at the lows — a sign of a real tug-of-war breaking out, not a clean win for the sellers. It's the earliest smoke signal that a bottom MIGHT be forming; not the reversal itself, just the first crack in the sellers' control.
Also called: PS
Learn these first
Related Volume Price Analysis terms
Volume Price Analysis practice questions · Volume Price Analysis flashcards · Volume Price Analysis study guide