Support and Resistance Gold Trading Analysis & Support and 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 and indicate the resistance and support levels.

Support and Resistance Indicator - Support and Resistance Levels Technical Indicator

When it comes to these levels price can either bounce off these regions or break out through these regions.

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

If a support level is broken xauusd trading price will move lower & this level will turn to a resistance.

Gold 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 trading prices will move lower.

Once xauusd trading price has broken through a support or a resistance then it is likely that the 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 trading price & bounces, the more major that particular level becomes.