Momentum Gold Trading Analysis & Momentum Trading Signals

The Moving Average Envelope indicator creates two lines around the xauusd trading price forming a channel. The upper and lower channel lines are drawn at an equidistant level above and below the Moving Average. The distance to draw the envelopes is calculated using a percent or a number of pips.

Moving Average Envelope

Gold Analysis & How to Generate Signals

MA Envelope can be traded using several different rules. The main method of generating gold trading signals is to use the xauusd price penetrating the upper channel or lower channel.

Bullish Gold Trading Signal

Gold Price penetrating the upper channel is a long buy xauusd trade signal.

Buy XAUUSD Trading Signal

Bearish Gold Trading Signal

Gold Price penetrating the lower channel is a short sell xauusd trade signal.

Sell XAUUSD Trading Signal

In a trending market the Moving Average points upward in an up gold trend market or downward in a down gold trending market. It is good to use the envelopes together with other technical indicators such as gold trendlines so as to confirm the signals generated.