Support & Resistance Technical Analysis & Support & Resistance Signals

Support & Resistance is one of vastly used concepts in xauusd 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 & support zones.

Support & Resistance Areas Indicator Analysis - Support & Resistance Indicator

In these levels price can either bounce off these regions and levels or break-out through these regions.

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

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

XAUUSD 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 prices will move lower.

Once price has broken through a support or a resistance then it is likely the price will continue to move in that specific direction until such a time when it gets to the next support resistance zone.

The more often a support/resistance level is tested or is touched by price and bounces, the more major that specific level becomes.