Where Should I place a Stop Loss Gold Order using Support and Resistance Levels?

A gold trader can use support and resistance levels on the gold chart to determine where to place their fore stop loss orders using the methods explained on the examples below:

Determining Where You Should place a Stop Loss XAUUSD Order using Resistance Levels in Gold Trading

One way of setting stop loss orders is to use resistance levels, on the xauusd charts.

Given that stop loss orders tend to congregate at key points, when one of these resistance levels is touched by the xauusd price, other trading orders are set off.

Stop loss orders tend to accumulate just above the resistance levels.

A resistance level should act like a barrier for xauusd price movement, this is why the resistance level are used to set stop losses.

If this resistance level is broken the xauusd price movement can go towards the opposite direction of the original gold trend, but if this resistance level is not broken the xauusd price will continue moving in the intended direction.

Stop Loss Gold Order Level Setting using Resistance Levels in Gold

Setting Stop Loss Gold Order above the Resistance Level

Determining Where You Should place a Stop Loss XAUUSD Order using Support Levels in Gold Trading

Another way of setting stop loss orders is to use support levels, on the xauusd charts.

Given that stop loss orders tend to congregate at key points, when one of these support levels is touched by the xauusd price, other trading orders are set off.

Stop loss orders tend to accumulate just below the support levels.

A support level should act like a barrier for xauusd price movement, this is why these support levels are used to set stop losses.

If this support level is broken the xauusd price movement can go towards the opposite direction of the original gold trend, but if this support level is not broken the xauusd price will continue moving in the intended direction.

Stop Loss XAUUSD Order Level Setting using Support Levels in Gold

Setting Stop Loss Gold Order below the Support Level