Gold Price Action Strategies
A trader must create a gold trading strategy that they stick to when trading the online gold market. A trader must have the discipline to follow the rules of their gold strategy at all times. That's why it's better to come up with trade strategies that are profitable - profitable gold trading systems will be a lot easier to follow & stick to. This is because a trader knows that by following the rules of their gold system they will be successful.
A carefully designed strategy which has been back tested & proven to produce profitable trading results is one of the keys to becoming successful when trading the gold market. This type of strategy will make it easier for the trader to follow the rules of their gold strategy because they already know that the trading strategy is profitable, therefore maintaining the discipline to continue following the gold trading system will be much easier.
Successful gold trade strategies will also include:
1. Gold trading money management guidelines
2.Gold Trading Psychology Mindset
These 2 will greatly improve the success of any xauusd trading system.
However, Let us look at xauusd trading price action strategy before explaining more about gold trading money management and gold trading psychology.
XAUUSD Price Action Trading Strategies
Gold Price action is the use of xauusd trading price movements to determine when to buy or close trades. Gold price action will use the study of xauusd chart patterns that form time and time again and these xauusd chart patterns can be interpreted in different ways. The trader will use this xauusd chart pattern to determine the likely market direction that the xauusd market is likely to take next based on the xauusd trading price xauusd chart patterns that have been formed on the charts.
In xauusd trading price action traders may use different methods to generate gold trading signals from the chart setups. Some of these techniques are:
Candles xauusd trading chart patterns - a trader may use the study of Japanese candlestick chart formations which is the study of various candlestick formations along with how to interpret these candlesticks formations. A candlestick pattern may consist of only one gold candlestick or a multiple of gold candlesticks. To learn more about xauusd candlesticks patterns traders can find these candlestick chart patterns tutorials on the learn gold trading lessons of this web site under the xauusd trading analysis concepts.
Support and Resistance Levels - traders can use xauusd trading price action and combine this xauusd trading price action with support and resistance levels. A trader will wait for xauusd trading price to hit the support level to open a buy gold trade and wait for the xauusd trading price to touch the resistance level to open a sell gold trade. The concept of trading major support and resistance levels is a very popular method in gold. For example in a upward trend a trader may wait & only open buy gold traders when prices hit support levels - at the same time a trader will take profit once the xauusd trading price hits a resistance level and then wait for another pullback to open a buy gold trade again.
To learn more about support and resistance levels traders can find these tutorials on the learn gold trading lessons of this web site under the xauusd trading analysis concepts.
Gold Trend lines - traders can also use gold trend lines to determine xauusd trading price action direction or the xauusd market trend. For an upward gold trend line that shows the xauusd market is trending up a trader will open buy xauusd trades once xauusd trading price touches the upwards trend line. For a downward gold trend that shows the general market direction is downwards a trader will open sell xauusd trades once the xauusd price touches the downwards gold trend line.
To learn more about how to trade with gold trend lines traders can find these tutorials on the learn gold trading lessons of this web site under the xauusd trading analysis concepts.
Gold Chart Patterns - xauusd chart patterns is different from candlestick patterns, these are two different methods of technical analysis, and traders should learn more about xauusd chart patterns in the gold trading courses section of this site under the technical analysis concepts.
Chart patterns is the study of a formation of several candlesticks over a period of time. These patterns are consolidation patterns, gold trend continuation patterns and market reversal gold patterns. Traders can use the study of these xauusd chart patterns to determine the next likely market move.
Gold Trading Strategy Tips
Once a trader has come up with their gold trading strategy, they should also include the following so as to make their gold trading strategy more successful.
1.Gold Trading Money Management Rules
2.Gold Trading Psychology
Gold Trading Money Management Rules
Gold trading money management guide-lines should be part of your gold strategy - these rules will help you as a trader to manage risk. This means that you will use the 2 rules of gold trading money management - these are risk : reward ratio & draw down reducing method when placing your xauusd trades to determine lot size that you will open in the gold market. The most popular gold trading money management rule use in xauusd trading and the one that you should also add to your trading plan is the rule which says a trader should never risk more than 2% of their account balance on any one single xauusd trade.
To learn more about these two gold money management guidelines, traders should read the gold trading money management course that is on the learn gold trading courses section of this site under the gold trading key concepts lessons.
XAUUSD Trading Psychology Mindset
In order to become successful when trading the xauusd market a trader has to learn about gold trading psychology. The gold psychology or mindset that is required to become successful in gold trading is one that avoids the emotions of fear & greed while trading the xauusd market & is a mindset of total discipline that a trader will follow all their trading rules & their gold strategy and only trade with signals which are generated by their gold trading strategy. With discipline a trader will not trade unless their gold strategy gives a trading signal. A trader will have the mindset of only following their gold system 100% all the time without second guessing the xauusd system. A disciplined trader will also not place trades in xauusd market just because the xauusd market has started to move upwards or downward, instead a trader will wait for a signal to trade to be generated by their gold trading strategy.
In order to study more about gold psychology and how to manage emotions while trading the online gold market a trader can read the gold trading psychology lessons from the learn gold trading courses section of this site under the gold trading key concepts courses.
