Gold Trading Long and Short and Trading Charts
In Gold, there are two types of trades, these are:
- Long (buy) - long is if the trend is buy/bullish.
- Short (sell) - short is if the trend is sell/bearish.
Buying/Long and Selling/short
Both terms, refer to things we do when open a trade.
Buying Long = term to use when buying and when opening a trade.
Selling short = term to use when selling and when opening a trade.
Long - Long is another term used to refer to buying, If a trader goes long it means that he buys the XAUUSD pair that is heading in an upward trend. When the price is moving in an upward trend the trend is referred to as bullish.
Short - Short is a term used to refer to selling of XAUUSD pair that is going in a downward trend.when the price is going downwards then it is referred to as a bearish trend.
Basically the term, "selling short" can be refer to selling XAUUSD in the online Gold trading markets. Selling short is used to transact a financial instrument (for example Gold) that is predicted to depreciate in value compared to another, when this financial instrument is sold then it is the same as not holding value in this instrument and holding the same value in the other currency - in our example selling Gold and holding the value in the currency USD.
If the price is going up we buy, this is referred to as going long Therefore long is just another name for buy. When the market trend is going up it is referred to as a bullish, this is when a buy order is placed. A bullish trend is identified by plotting an upward trend line on a XAUUSD trading chart. The example below shows a long/buy signal.
If the XAUUSD price pair is going down we sell, this is referred to as going short. When the market trend is going down it is referred to as a bearish. The example below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward trend line on a chart. The example below shows a short/sell signal.
Gold Trading Charts
A Gold chart provides a visual representation of exchange rates (plotted on the y-axis) against time (plotted on the x-axis) for a given currency pair in our example - XAUUSD. The movement of prices is plotted on these trading charts. The chart can be plotted as candlestick charts like the one below or as line charts or bar charts .
The three common types of charts used in Gold Market are:
- Candlestick Charts
- Line charts
- Bar charts
These 3 types are covered in the topic Gold Chart Types.
Setting Buy Long and Sell Short on MetaTrader 4 Platform
Gold Trading Platform
This is the software that is provided by an online broker to help traders place their transactions in the online XAUUSD trading market. Once you download and install this software on your computer you can then begin to trade in the Gold Trading Market and also the Foreign Exchange market . All transactions are executed through this trading platform. If you want to learn a trading platform, MetaTrader 4 is a good platform to start with.
To set these orders - buy and sell orders - open MetaTrader 4, open a "chart ", right click on the "chart ", select "New Order ", then select the order either sell or buy as shown below. (Short Cut Keys - Press F9)