What is a Downtrend?
Down Gold trend is when the price of a gold chart is moving lower and lower. Gold Trading xauusd prices generally close lower than where they opened.
How to Trade Downward Gold Trend: Gold traders use the downward gold trend direction to open sell gold trades
Downward Gold Trend
Downward Gold Trend - Drawn using a downward gold trend line
What is a Downward Gold Trend? - What is a Gold Downtrend? - What is a Downtrend?
The MetaTrader 4 platform provides charting tools for drawing trends on gold charts. To draw xauusd trend on gold charts traders can use the trend line drawing tool provided on the MT4 software that is shown below.
Definition of a Gold Downward Trend and Meaning of Gold Trading Down
To draw a downward gold trend line on the MT4 platform and select point A where you want to start drawing and then point B where you want the it to touch. You can also right click on the trend-line and 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 particular direction for quite some time in what is known as a trend.
Principles of How to Draw and Define XAUUSD Trend
Use gold candlestick charts
- The points used to draw are along the highs of the xauusd trading price bars in a falling downward market. A downward bearish gold trend move is defined by lower highs and 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 not broken, the more powerful the downward gold trend signal.
