EC Forex Investors' Guide to Trading with Support Levels

existEC ForexWhen the platform invests in spot gold, how to skillfully use support levels for analysis? Let's learn more.

(1) In an upward trend, when the price is retraced, the negative line is significantly weaker than the previous positive line, especially when the volume is reduced near the support price. Then the positive line quickly recovers and the price rises again, indicating that the support is effective.

(2) During a pullback in an uptrend, if the negative line appears frequently and the bearish power gradually increases, even if there is a small rebound near the support line, the buying will lack continuity, and the price will eventually fall below the support line, which often means that the market may reverse.

(3) Prices trade sideways near the support line, and after a period of time, the Changyang line appears, confirming the role of the support line.

(4) If the price consolidates near the support line and a long negative line falls below the support line, investors choose to leave the market in order to reduce losses, and the price will continue to decline for some distance.

(5) On international trading platforms such as EC foreign exchange, the international gold price falls below the support line from top to bottom, which means that the market may turn from rise to fall. Usually, if the secondary downward trend in the main upward trend falls below its support line, it indicates that the main upward trend may have ended; Similarly, if the secondary pullback in the intermediate upward trend falls below the support line, the intermediate upward trend may end and the price will continue the original general trend.

(6) The price hits the support line from top to bottom. If it does not fall below or rebounds as soon as it is touched, and it is accompanied by a large trading volume, if there is a pullback again in the future, you can consider entering the market to gain rebound profits.

(7) The price falls below the support line from top to bottom. If it is accompanied by a large trading volume, it indicates that a new round of decline may be established. If there is a slight rebound, we should leave the market in time to avoid further losses.

(8) The price hits the support line from top to bottom, although it has not fallen below, but the lack of volume cooperation makes it less likely to rebound. Therefore, we should leave the market as soon as possible and wait and see.