How to look at support levels and resistance when investing in gold

Depending on your technique, you can also look at support and resistance patterns, etc.

**The chart is a clear proof of the balance of power between the bulls and bears, going up when the bulls are strong, and falling when the bears are strong, it's as simple as that. For example, if a person climbs a mountain and skies, he will encounter obstacles when climbing the mountain, which will affect the upward speed; When skiing, you will also encounter resistance and you will not be able to slide down, so it will evolve into resistance and support.

What is a resistance level? Resistance levels naturally form where bears are strong and bulls are weak, and in practice, due to the consistency of public expectations, the following areas often become obvious resistance zones:

1. The index opened lower than the previous ** on the day. In the process of climbing up, there will be resistance here, this is because after a night of thinking, the long and short sides have reached a consensus on the previous **, and there will be the previous ** price to participate in the auction transaction at the opening of the day. In the course of the index**, on the one hand, it will be hit by new sell-offs at any time, and on the other hand, when approaching the previous **, the selling orders accumulated in the morning will have a role, so that the bulls can easily cross this barrier.

2. The market opened lower after the day. Due to the accumulation of a large number of sell orders at the opening price during the auction, ** will encounter resistance when returning here.

3. The reason why the previous high is formed is because there is an obvious backlog of selling orders here, and when the index falls back again when it encounters resistance here, once it is close to the previous high, there will be new short-selling forces involved, and the bulls will become cautious. A clear m-head pattern is formed on the chart, and most of the time the right high will be lower than the left high.

At the same time, due to people's psychological effects, some integer marks often become important resistance when rising.

The purpose of identifying the resistance zone is to sell at the high or second high, and it is generally possible to sell before entering the identified resistance zone to increase the chance of closing. Or when the index has slipped from a high and is close to this high for the second time, it is open to sell. Support level, the place where it can't fall is the support level, and the common support levels are as follows:

1. If it goes higher after the opening and falls back to the opening price, the support will be stronger due to more buying precipitation. 2. If the index falls from a high place, the support force at the front is also strong.

3. Previous lows. The last low zone will generally become a psychological support level for people, and the reason is the same as the resistance zone.

4. The resistance of the previous high is large, and once it is effectively crossed, it will generally be supported when it falls back again due to the accumulation of more buying orders. The purpose of identifying the support level is to try to buy in the low area. From the above analysis, it can be seen that support and resistance are a pair of contradictions that can be transformed into each other, the original resistance level can become a support level after breaking through, and the original support level can become a resistance level after breaking through.

The grasp of support and resistance levels is helpful for the judgment of the broader market, such as when crossing the resistance zone, it indicates that the market is very strong and can be bought or sold; When it falls below the support zone, it indicates that the market is weak and it is possible to sell or not buy.

**Support and pressure levels in investing usually refer to positions where there is likely to be resistance to the direction of the stock price. Located above the current stock price, the position that has resistance to ** is the resistance level, and the position that is located below the stock price and hinders the stock price ** is the support level.

The charm of trading lies in the inability to **, if you can accurately judge the support and resistance levels, then all the transactions can be closed, as long as you enter the industry that makes money, think about the possibility? The support and resistance levels obtained by our technical analysis are just a matter of high probability, and we must also assist in improving the success rate of judgment with indicators such as structural divergence and volume increase, so that the success rate of more than 5% is considered very high.

Although the success rate is not very high, it can also allow many people to earn enough, the reason is that in terms of risk control, if you are wrong, you can get out in time, and if you are right, you can earn enough, even if you only do it right once or twice a year, it is enough. Therefore, technical analysis is still very useful, at least it gives us a basis for our operations, and it is more straightforward than abstract fundamental analysis.

How to determine the support and resistance levels?

The weekly chart of Shanghai and Gold, interpreted by the entanglement theory, has four A, B, C, and F in the center of the **; **Pivot two D, E; In technical analysis, look at the resistance level, look at the support level, in fact, the formation of the support level and the resistance level is mainly the transaction intensive area, which position of the transaction is intensive, think about the past will have resistance.

The D center is the ** center, and the support is provided by the upper edge of the C center, or the secondary small center G between the C and D centers; The formation of the e-center is under the supporting surface of the b-center plus the structural backlash; The lowest point of 216 points is the result of the support of the A center plus the pivot's divergence; The high point of 297 is due to the resistance of the C center, and of course, there is also the result of the resistance of the E center forming a secondary center H, which is structurally divergent. As can be seen from the formation of these pivots and highs and lows, the generation of support and resistance levels is not untraceable.

Let's take a look at where the current support and resistance levels are?

**The current support level is at the mid-gauge position of the secondary small center H and E centers, that is, the point of about 262 points; The resistance level comes from the C center, which is around 297 points. This is the first resistance level, which will become a support level if it is effectively broken; The next resistance is at the middle gauge of the D-center, between 330-340.

Of course, the accuracy of such judgment is not high, and it also needs to be coordinated with structure and volume to improve the success rate。Just like the formation of the low point of 216, the support level is superimposed on the divergence behind the second center, and the probability of success is very high.

This means that there is also a certain risk in ** investment, so you must distinguish it clearly when choosing, and it is also some professional terms.

The support level refers to the price level at which the stock price may encounter support and stop falling and stabilize. Resistance is a price level that corresponds to a support level, and resistance is a level that may experience pressure when the stock price rises.

The support level refers to a value that will appear when the **** is the case, which can also prevent the ** from becoming more serious; Resistance levels appear at ** time and can be stabilized **.

A support level is a price level that can block ****** when it is ******. The meaning of the resistance level is that the **** encounters pressure when it encounters a price that cannot rise.

The support level and the pressure level can be seen through **, above the ** is the pressure level, and below ** is the support level. When the stock price is **, it will not continue at a certain point in time**, and the stock price at this point in time is called a support level. When the stock price is **, it will not continue at a certain point in time, and the stock price at this point in time is called a pressure level.

**There are various theories about the determination of support and resistance levels, but they are basically self-justifying.

The pressure level and the support level are two important indicators in the **, which can clearly help us grasp the ** trend and identify the buying and selling signals, so as to guide our actual trading. If you have not understood this useful technical indicator, the next content should be well understood. Before you start, you might as well get a wave of benefits - the ** list selected by the organization is newly released, don't miss it when you pass by:

Top Secret] The ** list recommended by the agency was leaked, and it was quickly received within a limited time!!

If you really don't have enough time to study a certain **, you may wish to click the following link, enter what you want to know, and conduct an in-depth analysis: [Free] Test your **current valuation position?

That's all for today, if you still don't know how to operate it well, don't worry! This buying and selling timing reminder artifact can help you, it will identify the trend of the dealer and the main capital flow, and reasonably prompt you when to sell, just click to get it directly [AI Assisted Decision] Buying and selling timing to capture the artifact.

Spot ** resistance level refers to the point where there is pressure; A support level is a point that has support. There are several algorithms for resistance and support levels:

1) The simplest thing is to look at the highs and lows of the previous chart.

Resistance: 1previous highs;

2.Above**, the longer the **resistance;

3.Chip-intensive area (transaction-intensive platform);

4.technical analysis of key points; (e.g. box, boll, etc.).

5.Integer points (price levels) also give people psychological resistance;

Support: In principle, resistance levels that have been effectively broken through will in turn become support.

2) Secondly, through the ** system, let the early highs and lows coincide with one or several ** systems, so that the ** system will provide support or resistance to the ** system.

3) A little more complicated, is to use the trend line system, which requires you to observe the entire band and draw the trend line.

4) To complicate the difference, the size and structure of each wave type are calculated according to the wave theory, and the resistance and support levels are determined by determining the wave shape.

In addition, it is more likely to use trend lines, ** and wave theory to make a comprehensive judgment, which is a lot of calculation process.

5) A little more complicated is to do probability statistics on the results of comprehensive judgment, calculate the solution set of the matrix formed by the trend line, **, and the results of wave theory, and make this solution set conform to the reasonable distribution of the total fluctuation range of the current **, and then extract the resistance and support levels from this solution set, the calculation of this method is quite large, I have done it once and never want to do it again, but it is very accurate.

6) Resistance and support can also be judged by the previous **, or by subtracting the lowest point from the recent high, its 1 2

2 3 is also a relatively strong resistance and support level, which is the view of the Dow Theory.