XAUUSD Consolidation Breakout Indicator

With XAUUSD Consolidation Breakout Gold Chart Pattern the xauusd market price break out can move in any direction.

Consolidation Trading Patterns

Symmetrical triangles are xauusd chart patterns with converging trend-lines that form a consolidation period of the xauusd price. The technical analysis buy signal from a symmetrical triangle is the upside xauusd price breakout, while a downside xauusd price break-out is a technical sell signal. Ideally the gold market breaks out from a consolidation chart pattern - symmetrical triangle prior to reaching the apex of the triangle.

Gold Trend Lines can be drawn connecting the lows and highs of the consolidation chart pattern phase, the trend lines formed are symmetric and converge to form an apex - gold triangle pattern - gold consolidation pattern. A XAUUSD Consolidation Breakout should occur somewhere between 60-80% into the gold triangle pattern. An early or late XAUUSD Consolidation Breakout is more prone to whipsaw signals, and therefore less reliable. After a xauusd price breakout the apex of the triangle forms support and resistance levels for the xauusd price. Gold price that has broken out of the apex should not retrace past apex of the triangle consolidation chart pattern. The apex of the triangle consolidation chart pattern is used as a stop loss order setting area for the open xauusd trades.

When these gold consolidation chart patterns form we say that the gold market trend is taking a break before deciding the next direction to move.

These gold consolidation patterns form when there is a tug of war between the buyers & the sellers & the xauusd market can't decide which way to move.

XAUUSD Consolidation Breakout XAUUSD Pattern - XAUUSD Consolidation Breakout Indicator - Gold Consolidation Chart Pattern Gold Trading

However, this gold consolidation chart pattern cannot go on forever and just like in a tug of war one side eventually wins, looking at the XAUUSD chart below see how the consolidation eventually had a gold breakout and moved in one direction - XAUUSD Consolidation Breakout Gold Chart Pattern. Now how do you make sure you choose winning side?

XAUUSD Consolidation Breakout XAUUSD Indicator MT4 Gold Software - Consolidation Indicator XAUUSD - Gold Consolidation Indicator MT4 - Gold Consolidation Chart Pattern Gold Trading

XAUUSD Consolidation Breakout XAUUSD Pattern - XAUUSD Consolidation Breakout Indicator - Gold Consolidation Breakout Indicator MetaTrader 4

Now back to our gold question, how do we make sure we are on the winning side of the trade?

Well we wait until the xauusd price moves past one of the trendlines of the gold triangle consolidation pattern and put buy gold orders or sell gold orders in that direction. If xauusd price gold breaks the upper consolidation line we buy, if it xauusd price breaks the lower consolidation line we sell.

Alternatively if you don't want to wait for a consolidation gold breakout - you can use gold ending orders.