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