Technical Analysis of Moving Average Technical Indicator
Gold Trend Identification
The gold trading moving average technical indicator can be used as an technical indicator for generating trading signals. A buy or a sell signal is generated when price either moves above or below the moving average indicator, respectively.
If the Moving Average is moving upwards in diagonal manner then the general gold market trend is upward.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general gold market trend is downwards.
Upward XAUUSD Trend/Bullish Trend
If the Moving Average is moving up, then the trend is upward & the signal generated is a buy/bullish xauusd trade signal.
As long as the xauusd trading price is above the moving average then the gold trend will remain as an upwards trend. The moving average will act as a "support level" and xauusd trading price action of the gold chart candlesticks should not close below the Moving Average.
Buy XAUUSD Signal
When the xauusd trading price moves above the Moving Average and closes above the moving average, a buy signal is generated.
Gold Traders, who want to confirm the gold trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upward gold trend direction. It's always best to wait for the confirmation gold signal so as to reduce chances of a gold trading whipsaw.
Upwards Gold Trend - How to Day Trade Gold: A Detailed Guide to Day Trade Strategies
Downwards XAUUSD Trend/Bearish Market
If the Moving Average is moving down, then the trend is downwards and the signal generated is a sell/short xauusd trade signal.
As long as the xauusd trading price is below the Moving Average then the gold trend will remain as a downward bearish Gold trend. The Moving Average will act as a "resistance level" and xauusd trading price action of candlesticks should not close above the Moving Average.
Sell Gold Signal
When the xauusd trading price moves below the Moving Average and closes below the moving average, a sell signal is generated.
Traders who want to confirm the gold signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will reduce the chance of trading a gold trading whipsaw.
Downwards Gold Trend - How to Day Trade Gold: A Detailed Guide to Day Trade Strategies
XAUUSD Range Market signals
Range Gold Trading Market signals can also be identified using the Moving Average Gold Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another gold signal generation strategy that is more favored by traders compared to the above gold signal generation strategy method. Moving average crossover gold trading strategy is also the simplest form of a gold trading system widely used by online xauusd traders. This Moving Average crossover method is combined with other technical indicators to form more complex gold systems & gold trading strategies.
