What's 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 upwards or downward.
Trends can be interpreted using gold trend lines.
Gold Trend line analysis helps traders to define the direction of the 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 upwards sloping line this is referred to as an up gold trend - trendline drawn is referred to as an upward gold trend line.
For a downwards sloping line this is known as an down gold trend - the trendline drawn is referred to as an downwards gold trend line.
XAUUSD Trend Strategy
An upwards gold trendline is drawn below the upward sloping pattern by connecting at least 2 lows. This will draw a gold trendline which explains the general direction of the market upward.
The example illustrated and explained below shows how xauusd trading price moves when it is moving in an upward trend. The xauusd price will move upward forming support regions.
Since the xauusd market moves in a zigzag manner gold traders normally draw a gold trendline which shows the general upward gold trend direction.
What is an Examples 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 & 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 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 & higher price lows is broken - gold trendline break reversal xauusd trade signal.
Gold Trend Strategy
A downward gold trendline is drawn above the pattern formed by consecutive lower highs, it must connect at least two highs, with most recent high being lower.
Since xauusd trading price moves downward in a zigzag manner traders normally draw a line which shows the general downwards direction. In gold market technical analysis, this general direction is referred to as the Gold Trading TREND by traders. This down gold trendline is plotted on a Gold chart showing the resistance levels (bearish gold trend market direction).
What is an Examples 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, & 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 & lower price lows is broken - gold trendline break reversal xauusd trade signal.
