How to draw Support and Resistance for Gold

2 Nov 2021

As promised alongside our analysis and reports we will also be posting basic educational posts to help newcomers. Today we show how to draw support and resistance lines the GoldView way.

There are so many ways to draw and establish support and resistance lines. Typically this is an area where price stabilizes and fails tp break. Visually this can be represented by drawing a line to identify those areas. This can be drawn and identified in different ways. The 3 ways we draw support and resistance are as follows; Firstly we identify where price is stabilized, this is likely to show a collection of candles side by side or by a candle or wick touch to a price and then a big retracement.

1 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest or lowest wick from the collection of candles.

2 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest candle from collection of candles.

3 - We identify the turning point of our moving average line (EMA5 IN OUR CASE). We then draw a line on the top or bottom of this turn.

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