20 Pips a Day Compounding XAUUSD Strategy
The 10 or 20 pips xauusd price range moving average indicator strategy is used with the 15 minute and 1 Hour Gold Charts. On this xauusd chart timeframes we use the 100 and 200 simple moving average trading indicator.
Both the 1 Hour and 15 min chart time frames will use the 100 and 200 simple moving average indicator (SMA Indicator) to determine the direction of the Gold trend.
The 1 Hour gold chart time frame checks the long term direction of the Gold trend, upward trend or downward trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute xauusd price gold chart to find the optimal point to enter trades. Trades are opened only when the price is within 10 or 20 pips range of the 200 simple moving average indicator, if xauusd price is not within this pip range the trades are not opened.
Gold Uptrend/Bullish Market
To generate XAUUSD buy signals using the 10 or 20 pips moving average indicator gold trading strategy, we shall use the 1 hour and 15 min chart time frame.
On the 1H gold chart time frame the xauusd price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower gold chart time frame, the 15 min chart time frame to generate a xauusd trading signal.
On 15 min chart time frame, when price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy gold trade and place a stop loss 20 pips below the 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips that are suitable for your trading style but to avoid being stopped out by normal Gold volatility its best to use 20 pips stop loss.
A buy gold trade can also be opened when price touches the 100 Simple moving average technical indicator, provided it's not set very far from the 200 Simple Moving Average Line. Normally the 100 period simple moving average technical indicator will be within the 10 or 20 pips range of the 200 period simple moving average technical indicator.
100 and 200 Simple Moving Average XAUUSD Trading Indicator Buy Signal
XAUUSD Downtrend/Bearish Market
To generate Gold sell signals using the 10 or 20 pips moving average indicator gold trading strategy, we shall also use the 1hour and 15 min chart timeframe.
On the 1H gold chart time frame, the xauusd price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 min chart time frame to generate a gold trading Signal.
On 15 min chart, when price reaches the 10 or 20 pips range below the 200 simple moving average indicator, we open a sell xauusd trade and place a stop loss 20 pips above the 200 simple moving average trading indicator.
100 and 200 simple moving average Trading Indicator Sell XAUUSD Signal
With this gold strategy method xauusd price will generally bounce of these levels because many Gold traders watch these levels, and open similar trades at around the same point.
These levels act as short term resistance or support levels within the xauusd price xauusd charts.
Gold Profit Taking level for This XAUUSD Strategy
With this gold trading strategy the xauusd price will bounce and make a move in the direction of the original Gold trend. This move will range from 50 - 80 pips.
The best profit taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average indicator.
