Trading XAUUSD Find a Gold Trend
Definition of XAUUSD Trends
To identify a gold traders need to use gold tools that help in determining and identifying a xauusd trend.
The most popular gold tool to identify a gold trend is: Gold Trend Lines
A gold trend line depicts the points of support & resistance for the xauusd trading price, depending on the direction of the market.
For an upwards moving gold market trend the trendline will shows the points of support
For a downwards moving gold market trend the gold trend will show the areas of resistance
These gold trend lines are mainly used by many gold trader to figure out these resistance & support levels.
Gold Trendline is a straight line that connects 2 or more xauusd trading price points on a gold chart and then extends into the future to act as a level of support or resistance. There are two different types of gold trend: upward gold trend and downward trend. Gold Trend line is an aspect of xauusd trading analysis that uses line studies to try and predict where the next xauusd trading price move will head to. A trader should know how to draw & analyze the signals generated by this trend line tool.
The basis of this gold trend line analysis is based upon the idea that markets move in trends. Gold trend lines are used to show three things.
- The general xauusd price direction - upward or downward.
- The strength of the current move - and
- Where future support & resistance will be likely located
If gold trend lines forms in a certain direction then market usually moves in that direction for a period of time until a time when the trend line is broken.
Plotting these trend-lines on gold chart shows the general gold trend of the xauusd market which can either be upwards or downwards.
Below is example of how to draw these trend line on xauusd charts
Gold Trend-Line Guide: How to Draw and Trade Upwards Move Using Gold Trend Lines
Gold Trend-Line Guide: How to Draw and Trade Upwards Move Using Gold Trend Lines
Gold Trend-Line Guide: How to Draw and Trade Downward Move using Gold Trend Lines
Gold Trendline Guide: How to Draw and Trade Downwards Move using Gold Trend Lines
