XAUUSD 20 Pips Gold Price Range Moving Average Strategy
20 XAUUSD Pips XAUUSD Price Range Moving Average XAUUSD Trading Strategies
The 20 pips xauusd trading price range moving average gold trading strategy is used with the 1 Hour chart and 15 minute chart. On this chart time frames we use the 100 and 200 simple moving average xauusd technical technical indicator.
Both the 1 Hour and 15 minute chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the Gold trend.
The 1 Hour chart time frame checks the long term direction of the Gold trend, upward or downward trend, depending on the direction of the moving averages. All xauusd trades taken should be in this gold trend direction.
We then use the 15 min chart to find the optimal point to enter xauusd trades. Gold trades are opened only when the price is within 20 pips range of the 200 simple MA, if xauusd trading price is not within this pip range xauusd trades are not opened.
XAUUSD Uptrend/Bullish Market
To generate buy (bullish gold trading signals) using the 20 pips moving average Gold strategy, we shall use the 1hour and 15 minute chart time frame.
On the 1 hour chart time frame the xauusd trading price of the chart should be above both the 100 and 200 simple moving average. We then move to a lower chart time frame, the 15 min chart time frame to generate a xauusd trade signal.
On 15 minute chart time frame, when price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy trade and place a stop loss 30 pips below the 200 Simple Moving Average. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Gold volatility its best to use 30 pips stop loss.
A buy trade can also be opened when the price touches the 100 Simple moving average, provided it’s not very far from the 200 Simple Moving Average. Normally the 100 Simple Moving Average will be within the 20 pips range of the 200 SMA.
100 and 200 Simple Moving Average Buy Trading Signal - Moving Average Strategy
Gold Downtrend/Bearish Market
To generate sell (short gold trading signals) using the 20 pips moving average Gold strategy, we shall also use the 1 hour chart time frame and 15 minute chart time frame.
On the 1 hour chart time frame, the xauusd trading price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute chart time frame to generate a gold trading Signal.
On 15 minute chart, when price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average Sell Gold Signal - Moving Average Strategy
With this gold trading strategy method xauusd trading price will generally bounce of these support and resistance levels because many traders watch these levels, and open similar xauusd trades at around the same point.
These support and resistance levels act as short term resistance or support levels within the xauusd trading price charts.
Profit Taking level for This Strategy
With this gold trading strategy the xauusd trading price will bounce & make a move in direction of the original Gold trend. This move will range from 60 - 70 pips.
The best gold profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
