Support and Resistance Technical Analysis and Support & Resistance Signals

Support and 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 Technical Indicator Analysis - Support and Resistance Technical Indicator

In these levels price can either bounce off these regions 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 trading prices will move lower.

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