Best Chart Timeframe to Trade Gold

Multiple time frame gold analysis equals using 2 gold chart time frames to trade gold - a shorter gold chart time frame used for trading and a longer gold chart time frame used to check the xauusd trend.

Since it is always good to follow the gold trend when gold trading, in Multiple Chart Time Frame XAUUSD Analysis, the longer gold chart time frame 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 the direction of the gold trend, then mostly you will be on the winning side - this is what this Multiple Time Frame XAUUSD Analysis is all about.

Remember there is a popular saying by many gold 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 gold chart time frames to trade as shown below.

Examples of how each type of XAUUSD trader uses multiple Gold chart Timeframes analysis strategy:

Best Time Frame for Scalping

Scalpers hold on to their xauusd trades for only a few minutes. The scalper gold trader never holds on to a gold trading 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 gold chart wants to go long, checks 5 min gold chart, which looks like the one below, since 5 min show 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 objective of making quite a number of pips in profit, 30 - 60 pips.

XAUUSD day trader trading 15 min xauusd 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 objective of making a large number of pips in profit, 100 - 250 pips.

Swing trader using 1H gold chart wants to go short, checks 4H gold chart, which looks like the xauusd trading example illustrated and 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 objective of making a large number of pips in profit, 300 - 800 pips.

Position gold trader using the daily gold chart wants to go short, checks 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 Time Frame for Positional Trading Gold

How to Define A Gold Trend

Using a xauusd trading system that has 3 gold technical indicators - Moving Averages Crossover System, RSI XAUUSD Indicator and MACD XAUUSD Indicator - and uses simple rules to define the xauusd trend. The rules are:

Upward XAUUSD Trend

Both Moving Averages Moving Up

RSI Gold Indicator Above 50

MACD Gold Indicator Above Centerline

Downward Gold Trend

Both Moving Averages Moving Down

RSI Gold Indicator Below 50

MACD Gold Indicator Below Centerline