Price level definition
Price level
A price level is the cost of goods or services that a consumer or other party has to pay to purchase a service or product. Price levels rise as demand increases and drop when demand decreases.
How to determine a price level
You can determine the price level simply by looking at the asset’s current market price on a chart.
Often, when talking about price levels traders will be looking for support and resistance levels. A support level is found when the price falls to a level that usually causes a reversal, while a resistance level is found when the price reaches a high that usually sparks a sell off.
Traders might use these price levels for entry and exit points.