Gold investment is a technical job. In the process of gold trading , you must learn to analyze the market trend, so that the profit may exceed the loss. One of the most important is to analyze the support line in the gold price trend, also known as the resistance line.
Support lines are not created only in areas of high volume. When the market falls to 50% of the original rising wave, it will take a breather, and a support line is often formed in this range, which is actually caused by the psychological factors of the majority of investors. Technical analysis calls this rising wave (or The falling wave) returns to the starting point, the principle of symmetry. In addition, the staged lowest price is often the psychological support line for the majority of investors.
How to see the support line when frying gold ?
(1) In an upward trend, during the pullback process, the negative line of the K line is weaker than the previous positive line, especially when it is close to the support price, the trading volume shrinks, and then the positive line quickly eats up the negative line, and the gold price rises again, which is effective support.
(2) In an uptrend, during the pullback process, the K-line frequently appears negative lines, and the bear power increases. Even if there is a slight rebound near the support line, the gold price will eventually fall below the support line.
(3) A disk file is formed near the support line. After a period of consolidation, a long Yang line appears, and the support line is naturally effective.
(4) A disk file is formed near the support line, but it appears after finishing. A long Yinxian, investors are scrambling to flee in order to reduce losses, and the price of gold will continue to fall for a while.
(5 The price of gold falls below the support line from top to bottom, indicating that the market will change from an uptrend to a downtrend. Generally speaking, in an uptrend, there is an intermediate downtrend. If the market falls below the support line of an intermediate downtrend, it means that The upward trend has ended; in the intermediate upward trend, there is a secondary downward trend. If the market falls below the support line of the secondary downward trend, it means that the intermediate upward trend has ended, and the gold price will continue to decline according to the original downward trend.
(6) The gold price touches the support line from top to bottom, but fails to fall below it and turns around and rises. If there is a large trading volume, when there is another downward adjustment, it can be purchased to obtain rebound profits.
Reminder: For more information about 14k gold, 18k gold, gold market and other gold information, please pay attention to: reelfinancial.com, to provide you with today’s latest gold price, live gold price, international gold price and so on.