Best Leading Technical Indicator XAUUSD Trend Indicator & Momentum XAUUSD Trading Indicator Combination

Best combination of technical indicators Course - Stochastic Oscillator indicator, Moving Averages indicator, RSI indicator and MACD indicator

Stochastic Oscillator technical indicator can be combined with other technical indicators to form a gold strategy - Buy Sell Signal Indicator Meta Trader 4 Technical Indicators. For our examples we will combine it with:

• RSI technical indicator
• MACD technical indicator
• Moving Averages XAUUSD Trading Technical Indicator

Gold Indicator Combination Examples 1:

Sell XAUUSD Day Trading Signal - Best Combination of Indicators for Day XAUUSD Day Trading

From our trading strategy the sell xauusd trade signal gets generated when:

1. Both Moving Averages are moving down
2. RSI indicator is below 50
3. Stochastic moving downward
4. MACD indicator heading downward below centerline

Sell signal was generated when all these day trading rules were met. The exit day trading signal is generated when a signal in opposite direction is generated i.e. When the indicators reverse.

The thing about using such a day trading strategy is that we are using different types of technical indicators to confirm signals and avoid as many whip saws as possible in the process.

• Stochastic - is a momentum oscillator
• RSI indicator- is a momentum oscillator
• Moving Averages Trading Technical Indicator- is a trend following indicator
• MACD indicator- is a trend following technical indicator

It is very helpful to combine more than one day trading indicator, as a combination of gold day signals is better than relying on just a single technical indicator. The indicator combinations reinforce each other, and cancel out false whip saw fake-out trading signals.

A trend following indicator helps one to see the overall picture, while using more than one momentum indicator gives better & more reliable entry and exit points for trading.

Best combination of technical indicators and their trading signals help to interpret a lot of the xauusd market activity.

Example 2:

Buy Signal - Best XAUUSD Indicator Combination

For this indicator combination examples the trend is upward, but at some point there were a few false signals - whipsaws generated by the stochastic oscillator technical indicator - So the question is how can a trader avoid these day trading whipsaws?

The answer is by combining other indicators such as MACD technical indicator, RSI gold Indicator and Moving Averages a trader could have avoided the gold whipsaws, as shown on the xauusd trading example above MACD technical indicator had not given a gold crossover signal although it was very close to the zero center-line mark, at the same time the momentum at which the moving averages indicators turned was not decisive so as to signal a decisive trend reversal.

As long as MACD indicator is above zero center line mark even if the MACD indicator lines are heading downwards then the trend is still upwards. As you can see from the above indicator combination example MACD gold day indicator never went below zero line mark & afterwards the upwards trend continued with the MACD indicator maintaining above Zero Centerline & continuing to move upwards.

During ranging sideways trends Stochastic Oscillator Indicator will give the fastest trading signals which are prone to whipsaws & this is why stochastic oscillator indicator is best combined with other day indicators and signals generated are confirmed using other XAUUSD indicators to form - Best Leading Indicator Trend Indicator and Momentum Indicator Combination - Best Combination of Gold Indicators for Day Trading XAUUSD - Best Indicator Combination - Best XAUUSD Indicators for XAUUSD Day Trading Gold Strategies.