Easy Way to Find Strong Support and Resistance on Gold XAUUSD Chart

I will teach you an easy way to find supports and resistances on Gold XAUUSD on any time frame.

You will learn how to identify key supports and resistance levels and zones for analysis and trading in just a minute.

Real Example Step By Step

For the sake of the example, we will do support and resistance analysis on Gold XAUUSD on a daily time frame but remember that you can use these rules on any.

Find Key Level

The first thing that we will need to do, we should find key levels - historically significant price levels from where a strong bullish or bearish movement initiated earlier.

A good example of a key resistance level will be a high on our price chart.

That is a level from where a price dropped significantly.

Find Zone

After you identified a key level, remember that it is always part of the zone.

• A resistance level is always a part of a resistance zone,

• a support level is always part of a support zone.

To find a resistance zone, simply take a candlestick that set the highest high - a key level and take its close level as a lower bound of the zone.

On a chart, you can see our first resistance area.

Support Zone Example

Let's find some support now.

A low from where the price started to grow strongly will be a key support.

To draw a support area, take into consideration the level of a close of a candle that set that low.

Here is our support zone.

Double Key Level

Then, we simply continue looking for key support and resistance levels.

Now, examine this key level.

In the recent past, it acted as a key resistance and a key support.

After that, we will unite these zones into one single area.

Because current Gold price is testing that zone from above, it will be a support.

Another Resistance

Following these simple rules, I found another strong resistance.

Unique Cases

So far, we have 2 more historic key levels that we have not discussed yet.

These cases will be very specific.

2 key levels that we see on the left of a price chart are in fact part of support areas that we already identified.

Hence, there is no need for us to keep them on our Gold chart.

Complete Analysis

Here is our complete support and resistance analysis of GOLD XAUUSD daily time frame.

This method is very simple and straightforward.

An analysis of significant highs and lows and related candlesticks will help you to quickly find strong supports and resistances.

Use these structure for placing profitable trades and making accurate predictions in Gold XAUUSD market.