How Do I Use Gold Trend Lines in Gold Trading with Example?
Example of How to Use XAUUSD Trend Lines Signals to Trade XAUUSD Upwards Trend
Traders should use the upwards trend line to open gold buy trades once the xauusd price touches the upwards gold trend line.
How to Use Gold Trend Lines Signals to Trade Gold Upward Trending Market & Open Buy Gold Trades
Example of How to Use XAUUSD Trend Lines Signals to Trade XAUUSD Downwards Trend
Traders should use the downwards gold trend line to open gold sell trades once the xauusd price touches the downwards gold trend line.
How to Use Gold Trend Lines Signals to Trade Gold Downwards Trend and Open Sell Gold Trades
How to Use Gold Trend Lines Signals to Trade Gold
The gold trend is your friend. Is a popular saying among gold traders because you should never go against the gold trend when trading gold. This is the most reliable gold trading strategy used to trade Gold Trading because once prices begin to move in one particular direction they can continue to move in that direction for quite some time within the trend - therefore using this trend trading technique presents opportunity to make profits from the Gold Trading market.
To identify a gold trend gold traders commonly use the trend lines. Gold trend lines are provided on the MT4 xauusd charts and traders can use these trend line drawing tools on the MT4 platform to draw gold trend lines on xauusd charts.
Traders can then analyze gold trend movements on the gold charts using these trend lines.
Principles of How to Draw XAUUSD Trend Lines on XAUUSD Charts
Use gold candle charts to draw gold trend lines
- The chart points used to draw the trend-lines - upwards gold trend lines are along the lows of the xauusd price bars in a bullish gold market. An upwards bullish gold trend is defined by higher highs and higher lows of the xauusd price.
- The chart points used to draw the trend line - downward gold trend lines 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 of the xauusd price.
- The chart points used to draw the trend lines are extremes points - the high or the low xauusd price. These extreme xauusd price points are important because a xauusd price close beyond the extreme tells gold traders the gold trend might be changing. This is an entry or an exit xauusd trading signal.
- The more often a gold trend line is touched by xauusd price but it's not broken, the more powerful its gold trend signal.
