Support and resistance explained with gold examples

Support is a price area where buyers have stepped in before, like a floor. Resistance is where sellers have stepped in, like a ceiling. Price has memory, so these areas tend to matter again.

Drawing them: find several swing highs or lows that stopped near the same price and mark an area, not a single line. Gold often overshoots a level by a few dollars, so allow a band.

The more it held, the stronger it looks, but also the more traders have orders there. When a level finally breaks with a strong close, it often flips: old support becomes new resistance.

Do not trade every touch. Look for a reaction (a rejection wick, a break of structure) and a stop beyond the level. Practise in the Academy.

Education only. This is not financial advice. Trading gold with leverage involves a high risk of losing money.

Practise it for free

Learn step by step with the interactive Academy: charts you can tap, drag and replay, with a Coach and a free certificate.