What's a Downtrend?
Down Gold trend is when price of a gold chart is moving lower & lower. Gold Trading xauusd prices generally close lower than where they opened.
How to Trade Downwards Gold Trend: Gold traders use the downwards gold trend direction to open sell gold trades
Downwards Gold Trend
Downwards Gold Trend - Drawn using a downwards gold trend-line
What is Downward Gold Trend? - What's Gold Downtrend? - What is a Downtrend?
The MT4 platform provides charting tools for plotting trends on gold charts. To draw xauusd trend on gold charts traders can use the trend line plotting indicator tool provided on the MT4 software that is shown below.
Definition of a Gold Downward Trend & Explanation of Gold Trading Down
To draw a downwards gold trend line in MetaTrader 4 platform & choose point A where you want to start drawing and then point B where you want the it to touch. You can also right click in the trend-line & on the properties option select the option to extend its ray by ticking the "ray check box", if you do not want to extend it, then uncheck this option in your gold trading platform.
The gold trend is your friend. Is a popular saying among gold traders because you should never trade against it. This is the most reliable gold trading method to trade Gold Trading because once xauusd trading prices start to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw & Define XAUUSD Trend
Use gold candlestick charts
- The points used to plot are along the highs of the xauusd price bars in a falling downward market. A downwards bearish gold trend move is defined by lower highs & lower lows.
- The points used to draw the trend lines are extremes points - the high or the low xauusd trading price. These xauusd trading price extremes are important because a close beyond the extreme tells gold traders that the gold trend might be changing. This is an exit xauusd trade signal.
- The more often a downward gold trend is touched by xauusd trading price but it's not broken, then the more powerful the downward gold trend signal.
