How to find support and resistance in gold speculation? Five common indicator tools
When investing in spot gold, it is very important to find the support and resistance of the market. What are the ways to find the support and resistance?
Support level and resistance level are very important points in the market trend, which can also be called the potential inflection point of the market. Take support as an example. In a period of decline, gold price will rebound or reverse when it is blocked by support. This depends on the performance of the price after it touches the support. But in general, they will not fall directly below this position, especially for the first or second touch. The effect of resistance is the same.
There are many ways to find support and resistance in gold speculation, and there are many tools to use. The commonly used index tools are K-line, moving average, trend line, channel line, golden section line, etc.
1. K line
It is the most common way to find support and resistance through the K-line. Generally, you can refer to the high or low points of the price in a period of time. The high and low points are usually the support and resistance after the price is touched again, which will have a significant blocking effect. In addition, the physical coincidence position of the two K lines is also a very important inflection point.
2. Moving average
Take the 5-day and 10 day moving average commonly used by investors as an example. In the rising market, the two moving average golden forks are upward. When the gold price is pulled back, the 5-day and 10 day moving average are likely to be blocked. When it falls below the 5-day moving average, the 10 day moving average below will have a supporting effect.
3. Trend line
First of all, there is a premise that only when there is an obvious trend can we draw a trend line. Take the rising trend as an example. In a period of upward trend, when the price moves back to the trend line again, the price will rebound when it touches the trend line. The more the trend line that has been repeatedly verified before, the more obvious the support effect is. In actual combat, there is also a small skill, that is, the trend line close to 45 degrees is the most obvious. If you are interested, you may as well verify it.
4. Access line
The principle of the channel line is similar to the trend line, except that there are two lines in the channel line, up track and down track. Then, when the price returns to the two tracks above and below the channel, it is usually blocked and supported. The upper track position is the pressure, and the lower track position is the support. In addition, when the channel line is broken, take the rising trend as an example, the lower track is broken. When the price rebounds again and touches the lower track, the position of the lower track is resistance. This is the principle of support and resistance swap.
5. Golden section
The golden section line is also called Fibonacci callback line. In a period of obvious high and low trend, the golden section line is drawn first. In the line, 23.6%, 38.2%, 50%, 61.8%, 76.4% and so on usually play a blocking role.