Support and Resistance CFD Analysis & Support and Resistance CFD Signals

Support & Resistance is one of the widely used concepts in cfd trading. Most traders plot horizontal lines to show these areas.

There is also an indicator used to draw these levels automatically & indicate the resistance & support levels.

When it comes to these levels price can either bounce off these areas or break these areas.

If a resistance level is broken price will move higher and the resistance level will turn to a support.

If a support level is broken price will move lower and 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 prices will move lower.

Once price has broken through a support or a resistance then it is likely that the price will continue moving in that particular direction until it gets to the next support or resistance area.

The more often a support or resistance level is tested or is touched by the price & bounces, the more major that particular level becomes.

CFDs Analysis & Generating Signals

These levels are calculated a cfd trend lines method.

Upwards CFD Trading Trend

In an upwards trend the resistance and support will generally head upward

Upward CFDs Trend

Downwards CFD Trading Trend

In a downwards trend the resistance and support will generally head downward

Down-ward CFDs Trend