Where Should I set a StopLoss XAUUSD Order using Support and Resistance Zones?

A trader can use support and resistance levels on the gold chart to determine where to place their stop loss orders using the techniques described on the example below:

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

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

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

Stop Loss orders tend to accumulate just above the resistance zones.

A resistance area should act like a barrier for gold price movement, this is why the resistance zone are used to set stop loss orders.

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

Stop Loss Gold Order Level Setting using Resistance Zones in XAUUSD

Setting Stop Loss XAUUSD Order above the Resistance Level

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

Another way of setting stoploss orders is to use support levels, on the gold charts.

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

Stop-loss orders tend to accumulate just below the support zones.

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

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

Stop Loss Gold Order Level Setting using Support Zones in XAUUSD

Setting Stop Loss XAUUSD Order below the Support Level