Technical Analysis of Linear Weighted Moving Average Technical Indicator
XAUUSD Trend Identification
The gold linear weighted moving average indicator can be used as an technical indicator for generating trading signals. A buy or sell signal is generated when price either moves above or below the linear weighted moving average, respectively.
If Linear Weighted Moving Average is heading upward in diagonal manner then general gold trend is upward.
If on other hand the Linear Weighted Moving Average is moving downwards in diagonal manner then general gold trend is downwards.
Bullish Gold Trend
If Linear Weighted Moving Average is moving up, then the trend is upwards and the gold trading signal generated is a buy xauusd trade signal.
As long as the xauusd price is above the linear weighted moving average indicator - then the gold trend will remain as an upwards xauusd trend. The linear weighted moving average will act as a "support level" and xauusd price action of the gold candlesticks should not close below the Linear Weighted Moving Average XAUUSD Indicator.
Buy XAUUSD Signal
When the xauusd price moves above the Linear Weighted Moving Average and closes above the linear weighted moving average indicator - a buy signal is generated.
Gold Traders, who want to confirm the gold trade signal before trading, should wait until Linear Weighted Moving Average line turns & starts to move in an upward gold trend direction. It is always best to wait for the confirmation gold trading signal so as to reduce chances of a gold whipsaw.
Best Linear Weighted Moving Average for 1 Hour XAUUSD Chart
Bearish Gold Trend
If Linear Weighted Moving Average is moving down, then the trend is downwards & the gold signal generated is a sell xauusd trade signal.
As long as the xauusd price is below the Linear Weighted Moving Average then the gold trend will remain as downward bearish xauusd trend. The Linear Weighted Moving Average will act as a "resistance level" and xauusd price action of gold candlesticks should not close above the Linear Weighted Moving Average.
Sell XAUUSD Signal
When the xauusd price moves below the Linear Weighted Moving Average and closes below the linear weighted moving average - a sell signal is generated.
Traders who want to confirm the gold signal should wait until Linear Weighted Moving Average line turns & starts to move in a downward direction. This will reduce the chance of trading a gold whipsaw.
Best Linear Weighted Moving Average for 4 H XAUUSD Chart
Range Gold Market signals
Range XAUUSD Market signals can also be identified using the Linear Weighted Moving Average Gold Technical Indicator.
Linear Weighted Moving Average Crossover Technique Strategy
The linear weighted moving average crossover gold trading strategy is also another gold signal generation strategy that's popular among gold traders compared to the above gold signal generation strategy. Moving average cross over gold trading strategy is also the simplest form of a gold trading system widely used by traders. This Linear Weighted Moving Average crossover gold trading strategy is combined with other indicators to form more complex gold trading strategies.
Best Linear Weighted Moving Average for 1 Hour XAUUSD Chart - Best Linear Weighted Moving Average for 1 Min XAUUSD Chart - Best Linear Weighted Moving Average for 15 Min XAUUSD Chart - Best Linear Weighted Moving Average for 4 H XAUUSD Chart
