TRADING LESSON – GOLD
In times of extended moves in the markets, simply using support and resistance lines can help you stay calm and composed in items that you really want to trade, say Gold.
Gold is rallying as we speak but not in a straight line, it has had movements of $50 recently.
The trader needs to pick the areas to enter trades carefully in order to avoid what I show in this chart and circled. Note the resistance level and the big reversal that took place.
When buying gold find a good support area and try to take profits on clear areas of resistance.