How to Trade a Gold Uptrend

Up Gold trend is when the price of a gold chart is moving higher & higher. Gold Trading xauusd prices generally close higher than where they opened.

How to Trade Upwards Gold Trend: Gold traders use upward trend direction to open buy gold trades

Drawing a Gold Upward Trend Line

When the xauusd market moves upwards it forms higher highs & higher lows forming a bullish market movement - upward xauusd trend. An upward gold trendline can then be plotted by connecting these higher lows of the xauusd price.

To draw this upward trend setup we use support levels. To draw the upwards trend line correctly two supports are needed. When xauusd price touches the upward line we open buy xauusd trades and place stop loss just a few pips below the upwards trend line. The upward gold trend line below shows an example of this upwards trend.

Strategy for Trading a Gold Upwards Trend - Drawing a Gold Upwards Trend-Line

The upward gold trend setup will show the general direction of the market as bullish therefore gold traders will only open buy long trades as long as price is within this up gold trend setup and within the support levels.

These support levels are the levels where if the xauusd market retraces then this support points will provide strong supports for the xauusd price. This is why many buyers will wait until xauusd price retraces downward & hits these retracements levels on the upwards trend line to open buy xauusd trades. Trades opened at these levels have a high Risk:Reward Ratio and have little drawdown.

In the above setup the trader would have opened buy xauusd trades form the gold signals generated at the support 1, support 2, support 3 and these buy xauusd trades would have been opened with minimum amount of draw down/retracement.

Upward XAUUSD Channel

A gold channel is drawn by drawing a line that is parallel to the upward trend line & then adjusted to touch the tops boundary of the xauusd price movement. This then forms a channel - upward channel and as long as the price stays between these 2 channels the bullish market gold trend movement will continue moving up.

Upwards Gold Channel & Upward Gold Trend Trading Strategy

Trading the Upwards Gold Channel

This upwards gold channel is used by traders to show levels where it best to take profits. Traders will take some profit once the xauusd price touches the upper channel & wait for another retracement before opening a buy gold trade again.