Support and Resistance Silver Analysis & Support and Resistance Trading Signals

Support and Resistance is one of the widely used concepts in silver trading. Most traders draw horizontal lines to explain these levels.

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

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 and the resistance level will turn to a support.

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

Price where the majority of investors believe that trading prices will move higher, while resistance levels indicate the trading price at which a majority of investors feel trading prices will move lower.

Once 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 price & bounces, the more major that particular level becomes.

Technical Analysis & Generating Trade Signals

These levels are calculated a trend lines method.

Upwards XAGUSD Trading Trend

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

Upward Silver Trend

Downwards XAGUSD Trading Trend

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

Down-ward Silver Trend