How to Trade a Up Gold trend Reversal

How to Trade Upward Gold Trend Reversal: How to Identify a Gold Upward Trend Reversal Trading Signal

Up XAUUSD trend Gold Trading Reversal

When xauusd trading price breaks-out below the upward trend line (support) xauusd market will then move downwards

How to Trade an Up Gold trend Reversal? - Strategy for Trading a Gold Upward Trend Reversal

Upward Gold Trend Reversal Trading Strategy

After xauusd trading price has moved in an upward direction for an extended period of time within a up gold trend it reaches a point where it stops moving within the upward trend. When this happens we say that the upward trend line has been broken & this is interpreted as a upward trend reversal signal.

Since the upward trend line is the point of support & this point of support has been broken after a up gold trend-line break - we then expect the xauusd trading price to move downward towards the opposite direction and this is interpreted as a up gold trend reversal signal.

When this happens gold traders will close the open gold buy orders which they had bought. This is referred to as taking profit.

This gold trend reversal trading signal is considered to be confirmerd with formation of a lower high of the xauusd price. This also provides a trading opportunity to open sell xauusd trades once the up gold trend line is broken - gold trading reversal signal.

NB: Sometimes when price breaks its upward trend it might first of all consolidate before moving in the opposite direction. Either way it is always good to take profit when the xauusd market up gold trend reverses.

To trade this upward trend trading reversal setup as a trader once you open a new gold trade in the direction of the trend reversal the xauusd trading prices should immediately move in that direction - downward, in a xauusd price break-out manner. This means that the xauusd prices should immediately move in that downwards direction without much of a resistance.

If on the other hand the xauusd trading prices don't immediately move in the downward direction of the xauusd trading price breakout then it is best to close out the sell gold trade because it means that the up gold trend is still holding.

Another tip is to wait for the up gold trend line to be broken & for the xauusd market to close below it so as to confirm this upward trend reversal signal.

What happens is that most traders open xauusd trades waiting for a gold trading reversal even before the up gold trend is broken, only for the xauusd trading price to touch this upward trend line & for the current market up gold trend direction to hold and gold to continue with the current market upwards xauusd trend.

Therefore, when trading this up gold trend reversal setup it is best to wait until the xauusd trading price break out has been confirmed by xauusd trading price closing below the trend line.

• Upwards Market Gold Trend Direction Reversal - this gold trend reversal signal is confirmed once the xauusd trading price closes below this upward trendline, this should be the correct time to open a sell gold trade, so as to avoid a gold trading whipsaw.