What is an Example of a Gold Trend? Identifying Trends in Gold Trading
A gold trend in gold trading is the tendency of xauusd trading prices to move in a particular direction for a period of time in a general direction upward or downward.
Trends can be analyzed using gold trend lines.
Gold Trend line analysis helps traders to define the direction of the gold market. Gold Trend lines connect a series of xauusd trading price highs or xauusd trading price lows forming a sloping gold trend which represents the general movement of the xauusd trading price.
For an upward sloping line this is known as an up gold trend - the trend line drawn is known as an upward gold trend line.
For a downward sloping line this is known as an down gold trend - the trend line drawn is known as an downward gold trend line.
XAUUSD Trend Strategy
An upward gold trend line is drawn below the upward sloping pattern by connecting at least two lows. This will draw a gold trend line that show the general direction of the xauusd market upwards.
The example illustrated and explained below shows how xauusd trading price moves when it is moving in an upward trend. The xauusd trading price will move upwards forming support regions.
Since the xauusd market moves in a zigzag manner gold traders normally draw a gold trend line which shows the general upwards gold trend direction.
What is an Example of a Gold Trend? Identifying Trends in Gold Trading - Gold Trend Definition
An up gold trend occurs when the price makes consecutive higher price highs and higher price lows. Each xauusd trading price high is higher than the previous xauusd trading price high - higher high, and each xauusd trading price low is higher than the previous xauusd trading price low - higher low.
Up gold trend lines gain more validity each time xauusd trading price touches but does not penetrate it. An up gold trend remains in place until this series of higher price highs and higher price lows is broken - gold trend line break reversal xauusd trade signal.
Gold Trend Strategy
A downward gold trend line is drawn above the pattern formed by consecutive lower highs, it must connect at least two highs, with the most recent high being lower.
Since xauusd trading price moves down in a zigzag manner traders normally draw a line which shows the general downward direction. In gold market technical analysis, this general direction is referred to as the Gold Trading TREND by traders. This down gold trend line is drawn on a Gold chart showing the resistance levels (bearish gold trend market direction).
What is an Example of a Gold Trend? Identifying Trends in Gold Trading - Gold Trend Definition
A down gold trend occurs when the price forms a series of lower highs and lower lows. Each xauusd trading price high is lower than the previous xauusd trading price high - lower high, and each xauusd trading price low is lower than the previous xauusd trading price low - lower low therefore showing bearish xauusd trading price movement.
Down gold trend lines gain more validity each time xauusd trading price touches but does not penetrate the trend line. A down trend remains the general direction until this series of lower price highs and lower price lows is broken - gold trend line break reversal xauusd trade signal.
