The region with strong short-end energy and weak double-end energy naturally produces resistance potential. Combined with reality, due to the completeness of everyone's prediction, the following areas often become significant friction and resistance areas:
1, the opening time of the gold price on that day is less than the previous closing price. In the whole process of climbing up, you will encounter friction resistance again. This is because after a night of thinking, bulls and bears reached the same liquidation plan. When the market opens that day, if the price of gold is low, it means that the seller has a strong intention. In the whole process of gold price rebound, it will not only be severely hit by new selling at any time and place, but also the selling accumulated in the morning will play a role when it approaches the market before the close, making the double-headed market pass this barrier casually.
The new house collapsed at the beginning of the day. Because I sold a lot at the opening, I encountered friction when I jumped back here.
3, often higher than before, because there is an obvious backlog of stocks sold here. When the price of gold is blocked from falling again and rises again, if it is close to the previous high point, there will be new bearish energy to intervene, and the two heads will become more and more cautious. There is a significant M-head shape on the chart, and the height on the right side will be smaller than that on the left side most of the time.
4. Due to everyone's psychological factors, some whole quantities often become the key frictional resistance. The purpose of identifying the friction resistance zone is to sell at the highest or second highest price, which can generally be sold before entering the identified friction resistance zone. Or when the price of silver falls from the sky, it will be sold in a higher daily newspaper.
Second, the level of support
The area that cannot fall is the support level, and the general support level is as follows:
1. If it strengthens after the opening, it will fall to the opening time, because the buying is heavy and the support will be stronger.
2. If the price of gold falls from the sky before the close, there will be strong support at the close.
3. Front bottom point. The bottom point area produced before will usually become the supporting position of everyone's psychological state, and its principle is the same as that of friction resistance area.
4. Last time it was higher, and the friction resistance was great. If you flip it reasonably, because there are more accumulated buying, you will generally get a support point when you fall again. Determine the support level to win the purchase of the bottom area. From the analysis, it can be seen that support point and friction resistance are two differences that can be transformed into each other. The original resistance level can be turned into support level, and the original support level can be turned into resistance level after being conquered. Mastering the support level and resistance level is conducive to the judgment of the market. For example, if you cross the friction resistance zone, it means that the market is very strong and you can buy or sell. When it falls below the support zone, it means that the market is too weak to sell or not to buy.