Draw a Gold Trendline on a Chart

How to Draw a Gold Trendline on a Chart - How to Draw Gold Trend Lines on XAUUSD Charts

Principles of How to Draw a XAUUSD Trend Line on a Chart

1. Use gold candle charts to draw gold trend lines

2. The points used to draw a gold trend-line on a xauusd charts are along the lows of the xauusd price bars in a bullish gold market. An upwards bullish gold trend is defined by higher highs & higher lows.
3. The points used to draw a gold trend-line on a xauusd charts are along the highs of the xauusd price bars in a bearish gold market. A downwards bearish gold trend is defined by lower highs & lower lows.
4. The points used to draw gold trend lines on the xauusd charts are the extremes points - the high or the low xauusd price. These extremes are important because a close beyond the extreme chart points tells gold traders the gold trend might be changing. This is an entry or an exit xauusd trading signal.
5. The more often a gold trend-line on a gold chart is hit but it is not broken, the more powerful its gold trend signal.

Example 1: How to Draw a Upward XAUUSD Trend Line on a Chart

To draw an upwards gold trend-line on a gold chart use 2 support points in a bullish upward gold trend so as to draw the upward trend line & then extend the trend line as shown below. The upwards gold trend-line on a gold chart will show the general direction of xauusd prices and as long as price is above this upwards trend line then the upward trend will remain intact - bullish upward xauusd trend.

If xauusd prices move below the upwards trend line which is the support level for the bullish upward gold trend then xauusd traders should close all their open xauusd trades - because this might be a gold trend reversal trading signal. In an upwards gold trend xauusd price should generally stay above support area which is marked by the upwards trend line on the xauusd charts.

Draw a Up Gold Trendline on a Chart in Gold Trading

How to Draw an Upward Gold Trend-Line on a Chart - How to Draw a Gold Trendline on a Chart

Example 2: How to Draw a Downward XAUUSD Trend Line on a Chart

To draw a downwards gold trend-line on a gold chart use 2 resistance points in a bearish downward gold trend so as to draw the downwards gold trend line & then extend the trend line as illustrated below. Downwards gold trend-line on a gold chart will show the general direction of xauusd prices & as long as price is below this downwards trend line then the downwards gold trend will remain intact - bearish downwards xauusd trend.

If xauusd prices move above the downward gold trend line which is the resistance level for the bearish downward gold trend then traders should close all their open xauusd trades - because this might be a gold trend reversal trading signal. In an downwards gold trend xauusd price should generally stay below the resistance level which is marked by the downwards trend-line on a xauusd chart.

Draw a Gold Trading Down Trendline on a Chart in Gold Trading

How to Draw Downwards Gold Trend-Line on a Chart - How to Draw a Gold Trendline on a Chart