How to Find Key Levels and Support/Resistance Zones in Gold Trading Explained. Complete Guide XAUUSD
- VasilyTrader
- Sep 2
- 2 min read
Key levels and support/resistance zones are 2 essential concepts for profitable trading Gold.
In this article, I will share with you a simple and a proven way to find levels and supply/demand clusters on XAUUSD chart.
I will provide a complete guide with examples.
Find Key Levels
Always start levels/zones analysis on Gold with key levels identification.
Simply put, a key level is a completion point of a strong bullish or bearish movement.
It is the highest high of a bullish wave and the lowest low of a bearish wave.
Let's take a price action on Gold for the last month and let's try to identify key levels.
Analyzing peeks and bottoms of significant price movements, I managed to quickly find a bunch of important key levels.
The ones that are below current spot prices will be called key support levels, while the ones that are above current prices will be called key resistance levels.
Find Key Zones
What many traders miss, analyzing key levels, is that every key level will always be a part of support/resistance zones.
Candle closes of highs and lows of important price movement will also be important levels.
I underlined all such levels on our Gold XAUUSD chart.
Key levels and highs/lows of the impulses will compose supply and demand zones.
That is how these zones look.
The areas that are based on key supports will be called demand zones.
The areas that are based on key resistances will be called supply zones.
The logic is that a high volume of selling orders will be distributed within supply clusters.
Probabilities will be high that a bearish reaction will follow after a test of such a zone.
Demand zones will accumulate buying orders and buying activity.
With a high probability, Gold price will bounce from such zones.
Always Analyse Levels & Zones
Levels and zones analysis will provide you with a map for trading Gold.
Use that as a map that 95% of retail traders will not see.
It will help you find profitable trades.
