There is one free technical indicator that will show you every significant psychological level on Gold XAUUSD chart.
It is available on TradingView and it is very easy to set.
Discover the best psychological support and resistance indicator for Gold trading, its settings and useful tips.
First, let's discuss the significance of psychological levels in GOLD XAUUSD analysis and trading.
The classic way of the search of significant supports and resistance is based on the analysis of a historic price action.
However, while Gold constantly sets new historic highs such a method does not work, because there are no historic resistances to rely on.
In such a situation, the only reliable strategy to find potentially strong resistances is to analyze psychological levels.
Psychological levels are the round numbers based price levels. Because of the common human psychological biases, these levels attract the interest of the market participants and the prices tend to react to them.
A great example of a psychological level in Gold trading is 3000 level.
It served as a resistance first and after a breakout turned into an important support.
And I found a free technical indicator that plots all the significant psychological levels efficiently.
One more thing to note is that I strictly recommend searching for psychological levels on a daily time frame, because it provides the most relevant perspective.
To use this indicator, search "round" in indicators window.
It is called "Round numbers above and below".
Click on that and it will start working immediately.
You can see that the indicator plotted 3 significant psychological resistances above current prices and 3 supports below on Gold chat.
In the settings of the indicator, you can change the number of levels to identify and change the style of the horizontal lines.
Examine the reaction of the price to psychological supports that the indicator shows. These levels may remain significant in futures and applied for pullback/breakout trading.
With a crazy bullish rally that we contemplate on Gold this year, psychological levels will be the most reliable technical analysis tools for the identification of future bearish reversals and corrections.
This free technical indicator on TradingView will help you in search of the strongest ones.
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✅Join My Telegram Channel: t.me/VasilyTrading
❗️YouTube Channel youtube.com/c/VasilyTrader
✅ Facebook: facebook.com/VasilyTrading/
⭐ My Forex & Gold Broker: bit.ly/vasilyforexbroker ⭐
❗️YouTube Channel youtube.com/c/VasilyTrader
✅ Facebook: facebook.com/VasilyTrading/
⭐ My Forex & Gold Broker: bit.ly/vasilyforexbroker ⭐
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.