Best Chart Timeframe to Trade Gold
Multiple timeframe gold analysis equals using 2 gold chart time-frames to trade gold - a shorter gold chart timeframe used for trading & a longer gold chart time-frame used to check the xauusd trend.
Since it's always good to follow the gold trend when gold trading, in Multiple Chart Time-frame XAUUSD Analysis, the longer gold chart timeframe gives us the direction of the long term xauusd trend.
If the long term gold trend direction supports the direction of the smaller gold chart time frame then the probability of opening a profitable gold trade is greatly increased. This is because even if you make a mistake the long term gold trend will eventually save you. Also if you trade with direction of trend, then mostly you will be on the winning side - this is what this Multiple Timeframe XAUUSD Analysis is all about.
Remember there's a popular saying by many traders and traders that says: "The gold trend is your friend" - never go against the gold trend when trading.
There are four different types of gold traders - all these different types of gold traders use different chart time-frames to trade as displayed below.
Examples of how each type of XAUUSD trader uses multiple Gold chart Time-frames analysis strategy:
Best Time Frame for Scalping
Scalpers hold on to their xauusd trades for only a few minutes. Scalper gold trader never holds on to a gold trade for more than 10 minutes. With the objective of making small amounts of pips as profit, 5 to 15 pips.
A Scalper using 1 min chart wants to go long, checks the 5 minutes trading chart, which look like the one below, since 5 minute explain gold trend is going up, then decides from this technical analysis it's okay to buy.
Best Time Frame for Scalping Gold
Best Time Frame for Day Trading Gold
Day gold traders hold on to their open xauusd trades for a few hours but not more than a day. With the aim of making quite a number of pips profit, 30 to 60 pips.
XAUUSD day trader trading 15 min chart wants to go long, checks 1H xauusd chart, which looks like the one below, since 1 hour shows gold trend is going up, then decides from this technical analysis it's okay to buy
Best Time Frame for Day Trading XAUUSD - Best Time Frame for Intraday Trading Gold
Best Time Frame for Swing Trading Gold
Swing gold traders hold on to their open xauusd trades for a few days to a week. With the aim of making a large number of pips profit, 100 to 250 pips.
Swing trader using 1H gold chart wants to go short, checks 4H gold chart, which looks like the xauusd example illustrated & explained below, since 4 hour shows the gold trend is going down, then decides from this technical analysis it's okay to sell.
Best Time-frame for Swing Trading XAUUSD - Best Time Frame for Swing Trading Gold
Best Time Frame for Positional Trading Gold
Position gold traders are traders that hold on to their xauusd trades for weeks or months. With the aim of making a large number of pips profit, 300 to 800 pips.
Position gold trader using the daily trading chart wants to go short, checks the weekly gold chart, weekly looks like the one below, since weekly shows the gold trend is going down, then decides from this technical analysis it's okay to sell.
Best Timeframe for Positional Trading Gold
How to Define A Gold Trend
Using a xauusd trading system that has 3 gold trading indicators - Moving Averages Crossover System, RSI XAUUSD Indicator & MACD XAUUSD Indicator - & uses simple rules to define the xauusd trend. The rules are:
Upwards XAUUSD Trend
Both Moving Averages Moving Up
RSI Gold Indicator Above 50
MACD Gold Indicator Above Centerline
Downwards Gold Trend
Both Moving Averages Moving Down
RSI Gold Indicator Below 50
MACD Gold Indicator Below Centerline
