How Do I Trade Support & Resistance Zones using Gold Trend Lines?
How to Trade Support & Resistance using XAUUSD Trend Lines Tutorial
Support & resistance levels on xauusd charts may sometimes form in a diagonal way especially when prices are moving in a upwards trend or downwards trend.
In a upward gold trend the support levels for the xauusd price will form in a diagonal way that's sloping upward - & from this upwards sloping diagonal support levels xauusd traders can then draw upward gold trendlines and use these upward gold trendlines to find the support levels.
In a downwards gold trend the resistance levels for the xauusd price will form in a diagonal way that's sloping downward - & from this downwards sloping diagonal resistance levels xauusd traders can then draw downward gold trend lines and use these downward gold trend lines to find the resistance levels.
How to Trade Support Zones Using Upward XAUUSD Trend Lines
An upward gold trendline is drawn below the upward trend pattern formed by consecutive higher low, the upward trendline must connect at least two xauusd price lows, with the most recent xauusd price low being higher.
Since xauusd price moves upward in a zigzag manner gold traders normally draw a upwards gold trendline which shows the general upward movement of the xauusd prices - In xauusd trading analysis we can define this upwards trendline is drawn on a gold chart showing the support levels (upward xauusd price direction).
How to Trade Support Zones Using Upward Gold Trend Lines - How to Trade Support and Resistance using Gold Trend Lines Guide
To draw this upwards trend we use support levels and to draw upwards gold trend correctly two support zones are needed. When xauusd price touches this upwards trendline, then gold traders will open buy xauusd trades and place stop loss orders just a few pips below the sloping support levels - shown by the upward trendline:
How to Trade Support Zones Using Upwards Gold Trend Lines
How to Trade Resistance Levels Using Downwards XAUUSD Trend Lines
A downward gold trend-line is drawn above the downwards gold trend pattern formed by consecutive lower highs, the downward gold trend-line must connect at-least two xauusd price highs, with the most recent xauusd price high being lower.
Since xauusd price moves downward in a zigzag manner gold traders normally draw a downward gold trend-line which shows the general downward movement of the xauusd prices - In xauusd trading analysis we can define this downwards trend-line is drawn on a xauusd trading chart showing the resistance levels (downwards xauusd price direction).
How to Trade Resistance Levels Using Downward Gold Trend Lines
To draw this downwards trend we use resistance levels and to draw downwards gold trend correctly two resistance levels are needed. When xauusd price touches this downward trend line, then gold traders will open sell xauusd trades & place stop loss orders just a few pips above the sloping resistance levels - shown by the downwards trend line:
How to Trade Resistance Levels Using Downward Gold Trend Lines
How to Trade Support & Resistance Zones using Gold Trendlines?
