Gold Indicators for Setting Stop losses in Gold Trading
Some gold indicators are used for setting stop losses taking away the need for xauusd traders to perform complex calculations on where to place these stop loss xauusd trade orders.
A gold trading systems trader can also place a stop-loss order according to these indicators. Some gold indicators use mathematical equations to calculate where the order stop loss order should be set so as to provide an optimal exit. These gold indicators can be used as the basis for setting stop loss orders. These gold indicators follow xauusd price action of a gold trading instrument closely and define the boundaries which the xauusd prices should move along in. When the xauusd price moves outside these boundaries it is therefore best to close the open xauusd trades because xauusd price stops moving in that particular direction.
Some of the Technical gold indicators that can be used to set stop loss orders are:
Parabolic SAR Indicator
Parabolic SAR is like an Automatic Stop Loss Gold Order & Take Profit Gold Order Indicator used to set a trailing xauusd price stop loss
Parabolic SAR provides excellent exit points.
In an upward gold trend, you should close long trades when the price falls below the Parabolic SAR technical indicator
In a downwards gold trend, you should close short trades when the price rises above the Parabolic SAR.
If you are long then the xauusd price is above the parabolic SAR, the SAR will move upward every day, regardless of the direction in which the xauusd price is moving. The amount the Parabolic SAR indicator moves upwards depends on the amount that xauusd prices moves.
Parabolic SAR - XAUUSD Indicator - Automatic Stop Loss Gold Order & Take Profit Gold Order Technical Indicator
Picture of parabolic SAR and how it's used
Bollinger Bands Technical Indicator
Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation trading indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands indicator consist of 3 bands designed to encompass the majority of a gold trading instruments xauusd price action. The middle band is a basis for the intermediate term gold trend, typically it is a 20 period simple moving average, which also serves as a base for the upper band as well as the lower band. Upper band's distance and lower band's distance from the middle band is usually determined by volatility.
Since these Bollinger bands are used to encompass the xauusd price action, the bollinger bands can be used by traders to set stop loss orders just outside the areas of the bands.
Bollinger Bands Setting Stop Loss Gold Order Level - Bollinger Bands Gold Technical indicator
Fibonacci Retracement Levels Indicator
Fibonacci retracement levels provide areas of support & resistance, these areas can be used to set stoploss levels.
Fibo Retracement level 61.8% is the most oftenly used level for setting stop-losses. A stoploss order should be set just below 61.80% fib retracement level
The 61.8 % Fibonacci retracement level technical indicator is used to set these orders since its rarely hit.
Fibonacci Indicator Stop Loss Gold Order Setting at 61.80% Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Indicator
Support and Resistance Levels Lines
Support & resistance levels can be used to set stop loss levels where the stop loss orders are set just above or below the support or resistance.
- Buy Gold Trade - Stop Loss Gold Order set a few pips below the support
Buy Gold Trade - Stop Loss Gold Order set few pips below the support
- Sell Gold Trade - Stop Loss Gold Order set few pips above the resistance
Sell Gold Trade - Stop Loss Gold Order set a few pips above the resistance
