The video is about how to easily analyze a financial asset, specifically gold, to find support and resistance levels. It emphasizes the importance of knowing key levels and trends to improve trading success. The speaker uses charts and technical analysis tools to demonstrate the process, and also mentions the significance of using moving averages.
How to Analyze Assets: The Simple Way
Are you new to trading and struggling to analyze assets? In this video, Faustin from the G4 Reading YouTube channel shows you how to easily analyze the gold market and find support and resistance levels. With his simple approach, you can improve your trading skills and make informed decisions.
Understanding the Gold Market
The first step is to understand the evolution of the gold market. Faustin shows you a monthly chart of gold prices since 1995, revealing an enormous bullish trend. He explains how gold is a value refuge and has the potential for a decade-long rise.
Finding Support and Resistance Levels
Next, Faustin demonstrates how to locate important levels of support and resistance. He advises to look for these levels on monthly charts first. Using XStation, Faustin adds an Ichimoku cloud overlay to give a clear view of the market trends over time.
Drawing Lines and Zones
Faustin uses a basic line-drawing technique to find key areas of interest. He draws horizontals at significant support and resistance levels, and highlights areas where prices have tested and held. For example, a horizontal line at support for gold reveals three points of contact, suggesting a strong level.
Using Moving Averages
Faustin emphasizes the use of moving averages in determining support and resistance levels. He demonstrates how a 200-period moving average on a 4-hour chart can act as a guide for where prices may rise or fall. He recommends waiting for a clear break above the moving average before entering a trade.
Putting it All Together
Using these techniques together, Faustin shows how to analyze assets like a pro. He combines trend analysis, support and resistance levels, Ichimoku clouds, and moving averages to create a complete picture of the gold market. By following his approach, you can easily identify potential trades and market trends.
Conclusion
Analyzing assets doesn’t have to be complicated. With the right tools and techniques, you can make informed trading decisions. Faustin’s simple approach to analyzing gold is a great example of how you can use basic charting tools and moving averages to find market trends and high-probability trades.