What is Price Action in Gold Trading?

Gold Trading xauusd price action is the analysis of price movements that are plotted on charts.

Gold Trading xauusd price action analysis uses line studies or price action patterns to try and determine the trend of the price chart.

Gold Trading xauusd price action signals can also be combined with systems that can be used to figure out which direction of trading to take.

Pin Bar Price Action Strategy

A pin-bar is a trend reversal signal on a price chart which highlights an obvious change in market sentiment during that particular period.

This pin bar price action set up has a long tail with closing xauusd price near the open. The pin bar pattern looks like a pin thus the name Pin Bar - occurs after an extended move upward or downward.

This trend reversal is confirmed after market closes below the candle that precedes this price action pattern. Below the reversal setup is confirmed after the market prices closes below the blue candle that preceded this pin bar candle-stick.

Price Action 1 2 3 Method in Gold Trading

Gold Price action strategy is the use of only xauusd price charts to trade XAUUSD, without the use of technical chart indicators. When trading with this method, candle-stick charts are used. This strategy uses lines & pre-determined patterns such as the 1-2-3 pattern that either develops as one price action pattern or series of price action setups.

Traders use this price action strategy because this analysis is very objective & allows the one to analyze the price market moves based on what they see on the charts and market movement analysis alone.

This strategy is used by many traders: even those that use indicators also integrate some form of price action in their strategy.

Price Action 1-2-3 Break out Strategy

This price action strategy uses three chart points to determine the break out direction of gold. The 1-2-3 method uses a peak and a trough, these points forms point 1 and point 2, if market moves above the peak the trade signal is long, if it moves below the trough the trade signal is to short. The break out of point 1 or point two forms the third point.

Gold Price Action 1.2.3 Break-out Strategy Examples

Combining Price Action Strategy Method with other Indicators

Good indicators to combine price action patterns with are:

• RSI

• MA Indicator

Traders should use these two indicators to confirm if the direction of the price action break out is in line with the trend direction shown by these two chart indicators. If the direction is also the same as the direction of these indicators then traders can open a trade transaction in the direction of the signal. If not traders shouldn't open a trade transaction as there's more likely a chance that this signal may be a gold whipsaw.

Just like any other chart indicator in Gold Trading, xauusd price action strategy also has whipsaws & there's a requirement to use this strategy as a combination with other signals as opposed to just using this price action strategy alone.

Combining Price Action Strategy other Indicators - RSI and Moving Averages Price Action Trading Strategy