Learn Gold Trading Strategies
Before coming up with a gold trading plan a trader must learn about the various gold trading strategies that they can sue to trade gold. Coming up with the right gold trading strategy can increase your chances of becoming more successful in xauusd trading.
For traders who want to learn about gold trading strategies there are 50 gold trading strategies listed in the gold trading strategies section of this strategy. This strategy section also shows traders how combine these trading strategies to create a xauusd trading system. The gold trading is a set of rules that will be used by traders to generate trading signals. For example the gold trading system rules will specify how two or more indicators will be used together to generate a buy or a sell signal.
As a trader the strategy you select should be applied in your trading once you decide what type of trader you are & what type of trading method you will be using to analyze the xauusd market moves.
For example you might decide you want to be a scalper you'll use your scalping strategy and only open traders for a few minutes. If you are a gold trend trader you will use your trading strategy after you have determined the gold trend of the gold trading market. If the gold trend is upwards you will use your gold trading strategy to open buy xauusd trades.
If you are a day trade you will use your strategy to open trades that will only be opened for a few hours. Your trades should all be closed during the day & you'll not hold your trades overnight. As for the trading method which may be that of gold trend following you will first draw gold trend lines on the gold chart to determine the overall market gold trend and after that you will then apply your trading strategy to open xauusd trades.
In technical analysis there are various techniques used to trade gold which a trader might use to ascertain which of these techniques of trading they will be using when trading the gold market. After select in their trading technique traders will then apply their gold trading strategy to open xauusd trades.
Types of XAUUSD Trading Methods
There are two general techniques of trading the xauusd market, these are:
1.Gold Trend Trading
2.Range Trading
Gold Trend Trading
In this method a trader will first of all determine the overall market gold trend before applying their gold trading strategy to open xauusd trades.
To determine the gold trend - this can either be an upwards gold trend or a downwards trend.
A trader may use gold trend lines or moving averages to determine the overall market trend. After determining the xauusd market trend then the trader can use their gold trading strategy to open xauusd trades.
For example a trader may determine that the xauusd market trend is upward by using moving averages. The trader may then use a gold indicator such as Bollinger bands and open trades once the xauusd price retraces to the lower Bollinger band because this lower band will act as the support level of xauusd price. Therefore the trading strategy that the trader will be using is the strategy of resistance and support levels and the trader will be using Bollinger bands to determine these points and open and close trades based on these points.
Range Trading
Range trading is a technique of trading gold that move within a particular band of xauusd prices and only oscillates between these two points without moving much outside these two points.
A trader will then use the strategy of support and resistance to determine which levels to open buy or sell xauusd trades. The trader will draw a support line and a resistance line. The support level will be used to open buy xauusd trades and the resistance level will be used to open sell xauusd trades.
The most popular technique between these two is the gold trend trading method. Traders should always try to trade with the gold trend method as this technique is the most reliable technique when it comes to trading gold. Even though sometimes the xauusd market will be trending and at other times the xauusd market will be moving in a range when the xauusd market is consolidating traders should try to trade the xauusd market only when there is a trend. After determining the gold trend traders will then use their gold trading strategy to determine when to open buy or sell xauusd trades that are in the direction of the overall market trend.
Once you've decided what type of trader you're: scalper, day trader or swing trader you should then come with the following:
1.Trading Method
2.Trading Strategy
After coming up with this two you will then combine these two & use these to determine when to buy or close trades.
You can then practice trading on the demo account so as to determine the profitability of your trading technique & strategy. You will then use the results to improve the profitability of your method & strategy & once you've gained experience to trade with these two you can then open an account & begin trading the live xauusd trading market.
