Support and Resistance Gold Trading Analysis and Support and Resistance Gold Trading Signals
Support and Resistance is one of the widely used concepts in gold trading. Most traders draw horizontal lines to show these levels.
There is also an indicator used to draw these levels automatically and indicate the resistance and support levels.
When it comes to these levels xauusd price can either bounce off these levels or break these levels.
If a resistance level is broken xauusd price will move higher and the resistance level will turn to a support.
If a support level is broken xauusd price will move lower and the this level will turn to a resistance.
Gold Price where the majority of investors believe that gold prices will move higher, while resistance levels indicate the xauusd price at which a majority of investors feel gold 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 moving in that particular direction until it gets to the next support or resistance level.
The more often a support or resistance level is tested or is touched by the xauusd price and bounces, the more major that particular level becomes.
XAUUSD Trading Analysis and Generating XAUUSD Trading Signals
These levels are calculated a gold trend lines method.
In an upward gold trend the resistance and support will generally head upwards
In a downward gold trend the resistance and support will generally head downwards