Gold Price Action Trading
Gold Price action trading is the use of only xauusd price charts to trade XAUUSD, without use of technical chart technical indicators. When trading using this price action strategy, candlestick charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 price action pattern trading strategy explained below.
Traders use this price action strategy because this analysis is very objective & allows the one to analyze the price moves depending on what they see on the charts market movement analysis alone.
This price action strategy is used by many traders: even those that use indicators also integrate some form of price action in their strategy.
Best use of this price action strategy is achieved when the price action signals generated are combined with line studies to provide extra confirmation. These line studies include trendlines, Fib retracement, support and resistance zones.
Price Action Trading
Gold Price action strategy uses three chart points to determine the break out direction of price. The 1-2-3 price action strategy uses a peak and a trough, these chart points forms point 1 and point 2, if market moves above the peak the price action signal is long, if it moves below the trough the price action signal is to short. The break out of point 1 or point 2 forms the third chart point.
XAUUSD Price Action 1.2.3 Price Action Strategy Method in Gold Trading - Price Action Trading
Gold Price Action Trading Strategy
XAUUSD Price Action 1.2.3 Price Action Strategy Method in Gold Trading - Price Action Trading
Gold traders use price action to try & predict where a trend direction may go. The market is either trending or ranging.
A trending market moves in a particular direction while a ranging market moves sideways, normally after hitting a support/resistance level.
Observing the behavior of price action provides this data of whether the market is trending, ranging or reversing its direction.
As with any other Gold Trading strategy this price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 setup can give good signals in a trending market but will give fake outs when the market is range bound, it is best to determine if the market is trending or not before you begin using this strategy.
