How Do I Trade Support & Resistance in XAUUSD Day Trading?

XAUUSD Trade Support and Resistance Levels in XAUUSD Day Trading

Support and Resistance Areas is one of the gold technical analysis concepts that's used by traders to analyze xauusd price levels on xauusd charts which act as barriers that prevent xauusd prices from moving past these xauusd price areas.

A support level acts as a barrier which prevents xauusd price from moving lower than where this level is. Support level acts as a floor for the xauusd price.

A resistance area acts as a barrier that prevents xauusd price from moving higher than where this level is. The support level acts as a ceiling for the xauusd price.

How to Trade Support Levels in XAUUSD Day Trading

Gold price will keep moving downward in a gold chart until it gets to a xauusd trading support level.

The xauusd price may bounce back up once it gets to this xauusd price support level.

It is for this reason that gold traders use support levels as areas for setting stop-loss orders or gold take profit orders depending on the gold trade that they have opened.

The more times a gold support level is tested by xauusd price without the xauusd price breaking past this support zone the stronger that gold support level is. The process of xauusd price touching the support level and bouncing back up is known as - testing the xauusd trading support level.

Gold support zones form chart points where xauusd price trend direction is likely to reverse once price reaches this support level.

How to Trade Support Levels in Gold Trading?

How to Trade Resistance Levels in XAUUSD Day Trading

Gold price will keep heading up in a gold chart until it gets to a xauusd trading resistance level.

The xauusd price may move lower once it gets to this xauusd price resistance level.

Because of this reason that gold traders use resistance levels as levels for setting stoploss orders or gold take profit orders depending on the gold trade that they have opened.

The more times a gold resistance level is tested by xauusd price without the xauusd price breaking past this resistance level the stronger that gold resistance level is. The process of xauusd price touching the resistance level and moving down is known as - testing the xauusd trading resistance level.

Gold resistance zones form chart points where xauusd price trend direction is likely to reverse once price reaches this resistance level.

How to Trade Resistance Levels in Gold Trading?

How to Trade Support and Resistance Levels in XAUUSD Day Trading?