How to correctly determine the support level in gold speculation ? The support level refers to the place where the gold price cannot fall during the trend of the gold price, which is the support level. Common support levels are as follows:
- If it goes higher after the opening, and falls back to the opening price, the support will be stronger due to more precipitation of buying orders.
- If the price of gold falls from a high point in the previous close, the support at the previous close is also strong.
- before the low point. The last formed low area generally acts as a psychological support level for people, for the same reason as the resistance area.
- The resistance of the previous high point is relatively large. Once it is effectively crossed, due to the accumulation of more buying orders, it will generally be supported when it falls again.
In the process of gold trading , it is determined that the support level is to try to buy in the low zone.
It can be seen from the above analysis that support and resistance are a pair of contradictions that can be transformed into each other. After the original resistance level is broken, it can become a support level in turn, and after the original support level is broken, it can also become a resistance level.
The grasp of support and resistance levels is helpful for judging the market. For example, when it crosses the resistance area, it indicates that the market is very strong and can be bought or sold; when it falls below the support area, it indicates that the market is weak and can be Buy or sell.