What is a Gold Trading Pullback?
The price does't move upwards or downward in a straight line. Instead the price moves up or down in a zigzag setup called a trend - in this pullback pattern the price moves upward in a trend then it retraces before resuming the trend direction - in a down ward trend the price moves downward in trend direction and then retraces before resuming the trend direction.
What's pullback? A xauusd price retracement is a pullback of the price before the market resumes the original trend movement.
Example of Zig-zag Price Movement: The example depicted and explained below portrays price heading up in a zig-zag setup showing xauusd price trend and price pullback.
The example depicted and explained below portrays movement in an upwards market and price pullback.
What's Pullback? - What's Gold Trading Pullback? - Price Pullback Explained with Example
1-2: Price Moves Up - Trend Direction
2-3: Price Pull Back
3-4: Price Moves Up - Trend Direction
4-5: Price Pull Back
5-6: Price Moves Up - Trend Direction
The pullback of price is described on the above example - this represents a gold trading pullback in an upward trend.
