XAUUSD ( gold ) based on support and resistance makes sense for traders who believe the price of gold has reached a price level that is unlikely to go higher (resistance). In other words, there may be a lot of traders trying to sell gold at that level, causing downward pressure on the market.
Moreover, support levels can indicate the price level at which a lot of traders are willing to buy gold . Therefore, if the price reaches that level, there may be an increase in buying demand, which could cause the price of gold to bounce back up.
By looking at the support and resistance levels, traders can potentially identify the optimal entry and exit points for their trades. Hence, if a trader believes that the price of gold has reached its resistance level , they may choose to sell XAUUSD in the hopes of benefiting from downward price movements.
In summary, selling XAUUSD based on support and resistance is a common strategy among traders who use technical analysis to identify entry and exit points. However, it is important to note that there are no guarantees in trading, and outcomes may vary. It is critical to conduct proper research and analysis before making any trading decisions.
Moreover, support levels can indicate the price level at which a lot of traders are willing to buy gold . Therefore, if the price reaches that level, there may be an increase in buying demand, which could cause the price of gold to bounce back up.
By looking at the support and resistance levels, traders can potentially identify the optimal entry and exit points for their trades. Hence, if a trader believes that the price of gold has reached its resistance level , they may choose to sell XAUUSD in the hopes of benefiting from downward price movements.
In summary, selling XAUUSD based on support and resistance is a common strategy among traders who use technical analysis to identify entry and exit points. However, it is important to note that there are no guarantees in trading, and outcomes may vary. It is critical to conduct proper research and analysis before making any trading decisions.
Trade closed: target reached