Gold Trading Analysis is Based on 3 Factors Common in the Gold Trading Market:
1. XAUUSD Price Moves in Trends
Xauusd price movements follow trends. This means that after a gold trend has been established, the future xauusd price movement is more likely to be in the same direction as a gold trend than to be against it. Most gold trading strategies are based on this xauusd trading analysis concept - gold trend trading.
2. XAUUSD Price Movement Discounts Everything
Xauusd trading analysis only considers xauusd price movement and assumes that, at any given time, xauusd price reflects everything that has or could affect the gold instrument including even the fundamental factors. This only leaves the study of xauusd price, which is a product of the supply and demand for gold in the xauusd trading market.
3. History Tends to Repeat Itself
History repeats itself mainly in terms of xauusd price movement. Repetitive nature of gold market movements is attributed to gold traders investor psychology; in other words, gold trading participants tend to provide a consistent reaction to the xauusd market most of the time. Xauusd trading analysis uses gold chart patterns to analyze these xauusd price movements. Although these gold charts represent historical data they are still relevant because they illustrate xauusd chart patterns that often repeat themselves.
List of All Gold Indicators - Gold Analysis Described Course - Gold Trading Analysis Guide
Understanding this xauusd trading analysis of the xauusd market can be a valuable gold trading tool in determining the gold trend of any gold market and assisting with entry and exit levels for your xauusd trades.
The goal of these xauusd trading analysis methods is to help gold traders determine when the xauusd market is trending, and when it is not. If the xauusd price is moving in one particular direction, then we want to be on board. If the gold is not moving in a particular direction, all you are going to do is lose money as you will get whipsawed around and this is not what we want as gold trading investors.
Unfortunately, many traders fight the gold trend and buy or sell in the opposite direction of a this gold trend direction, trying to pick a top or a gold market bottom, only to see the xauusd market move further in the direction of the trend.
Another common mistake gold traders often make is adding onto a losing gold trading position, averaging a loss. This is not a good gold trading strategy especially in a strongly trending gold trading market. It is something that experienced investors never do. The gold trend is your friend, never go against it.
This xauusd trading analysis studies alert investors of gold setups and there are no certainties in financial gold trading market. Profits come from using proven gold strategies and gold trading methods to find a trending gold market and taking xauusd trades in the same direction of the market trend.
With so many gold trading investors using similar gold trading tools, xauusd trading analysis can become a self fulfilling prophecy. If many gold trading investors use the same levels as a buying point, the xauusd price goes up as everyone will make similar xauusd trading analysis moves. However, the question is always how long these gold trading moves will last?
Understanding this xauusd trading analysis methods will give the gold charts some meaning when you look at them and apply xauusd trading analysis. Xauusd trading analysis will help you understand why certain xauusd price movements occurred.
Xauusd charts are used with gold technical indicators to look for xauusd chart patterns that have occurred in past under certain conditions. When these conditions are noted again, you can use the past xauusd chart patterns studies to make a buy or sell decision.
Learn Gold Analysis PDF
- Moving Averages Indicator
- RSI Indicator
- Stochastic Oscillator Indicator
- MACD Indicator
- Fibonacci Retracement Indicator
- Bollinger Bands Indicator
Most gold indicators are shown separately from the gold chart usually below it. This is because these indicators often use a different scale than that of the xauusd price chart.
Some of the gold indicators are shown on the xauusd price chart itself, such as Moving Averages and Bollinger bands - these indicators are referred to as xauusd price overlays.
Explanation of these indicators is found under the tutorial: List of All Gold Indicators - Gold Trading Analysis PDF - Gold Trading Analysis Example
SUMMARY
- Gold Trading Analysis Relies on Defining Probabilities
- Gold Trading Analysis Uses History of Gold Price Patterns
- Gold Trading Analysis Uses Several Analytical Tools (Gold Indicators)
- Gold Trading Analysis Uses XAUUSD Chart Patterns
Learn XAUUSD Analysis PDF
Most gold traders prefer technical analysis - learning the xauusd trading analysis methods also takes time to learn due to its nature which involves abiding by the xauusd trading technical rules.
To learn how to trade gold trading successfully, it is important that you understand the Three strategies, outlined below:
1. Gold price moves will always follow a gold trend which can be identified by looking at the xauusd chart patterns or the gold candlesticks charts. If any gold trading investor tells you that you can also profit from the counter-trends consistently it will not be possible because the gold trend is the only proven method of making money in the xauusd trading market.
2. The market forces will drive the xauusd prices up or down depending on supply and demand. Xauusd trading analysis seeks to measure the demand supply of a gold instrument using various xauusd trading analysis tools and xauusd indicators. The demand supply is reflected in the xauusd price action. Therefore, by simply looking at the xauusd price movements themselves you can try and predict what direction the xauusd price is likely to move towards using one or two xauusd indicators - xauusd trading analysis indicators like the moving average or support and resistance levels xauusd technical indicators.
3. The gold market not only shows the history of the past xauusd prices, but will also follow the gold trend that was in place, until its gold trend direction reverses. Some very important gold indicators used to determine these gold market movements are Moving Averages, MACD and Bollinger Bands Gold Indicators.
When xauusd price starts to consolidate, which means there is no gold trend, you should use a different approach to analyze the gold trading market. You should use support and resistance levels and breakout gold trading strategies to analyze the ranging gold market xauusd prices.
When the xauusd market retraces, you should use xauusd patterns & gold indicators to analyze whether the current gold trend will continue or reverse.
