Support and Resistance Gold Analysis & Support & Resistance Trading Signals
Support & Resistance is one of the widely used concepts in gold trading. Most traders draw horizontal lines to explain these levels.
There is also an indicator used to draw these levels automatically & indicate the resistance and support levels.
In these levels price can either bounce off these regions or break out through these regions.
If a resistance level is broken xauusd price will move higher & the resistance level will turn to a support.
If a support level is broken xauusd price will move lower & this level will turn to a resistance.
Price where the majority of investors believe that prices will move higher, while resistance levels indicate the price at which a majority of investors feel xauusd prices will move lower.
Once xauusd price has broken through a support or a resistance then it is likely that the xauusd price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.
The more often a support or resistance level is tested or is touched by the xauusd price & bounces, the more major that particular level becomes.
Gold Analysis and How to Generate Signals
These levels are calculated a trend lines method.
Upward Trend
In an upwards gold trend the resistance & support will generally head upward
Upward XAUUSD Trend
Downwards Trend
In a downward gold trend the resistance & support will generally head downwards
Downward Gold Trend
