Support and Resistance Energies Technical Analysis and Support & Resistance Trading Signals

Support & Resistance is one of the widely used concepts in energies trading. Most traders plot 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 energy price can either bounce off these regions or break out through these regions.

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

If a support level is broken energies price will move lower and this level will turn to a resistance.

Energies 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 energies trading prices will move lower.

Once energies price has broken through a support or a resistance then it is likely that the energy 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 energies price and bounces, the more major that particular level becomes.

Energy Technical Analysis & How to Generate Trading Signals

These levels are calculated a energies trend lines method.

Upward Energy Trading Trend

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

Upwards Energies Trading Trend

Downward Energy Trading Trend

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

Downwards Energies Trading Trend