What is Gold Price Action in Gold Trading?
Gold Trading xauusd price action is the analysis of xauusd price movements that are drawn on xauusd charts.
Gold Trading xauusd price action analysis uses line studies or xauusd price action patterns to try and determine the gold trend of the price chart.
Gold Trading xauusd price action trading signals can also be combined with gold systems that can be used to figure out which direction of trading to take.
Pin Bar Gold Price Action Trading Strategy
A pin bar is a gold trend reversal signal on a xauusd price chart which shows an obvious change in xauusd market sentiment during that period.
This pin bar xauusd 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 gold trend reversal is confirmed after market closes below the candle that precedes this xauusd price action pattern. Below the reversal setup is confirmed after the xauusd market xauusd prices closes below the blue candle that preceded this pin bar candlestick.
XAUUSD Price Action 1 2 3 Method in Gold Trading
Gold Price action trading strategy is the use of only xauusd price charts to trade Gold, without the use of technical chart technical indicators. When trading with this method, candlestick charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 pattern that either develops as one xauusd price action pattern or series of xauusd price action setups.
Traders use this xauusd price action gold trading strategy because this analysis is very objective & allows the one to analyze the xauusd price market moves based on what they see on the xauusd charts and market movement analysis alone.
This strategy is used by many traders: even those that use technical indicators also integrate some form of price action in their trading strategy.
XAUUSD Price Action 1-2-3 Break out Strategy
This xauusd 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 2 forms the third point.
Gold Price Action 1-2-3 Break out Gold Trading Strategy Examples
Combining XAUUSD Price Action Strategy with other Indicators
Good gold indicators to combine xauusd price action trading patterns with are:
- RSI
- Moving Average Indicator
Traders should use these two gold indicators to confirm if the direction of the xauusd price action breakout is in line with the gold trend direction shown by these two gold chart indicators. If the direction is also the same as the direction of these indicators then traders can open a trade in the direction of the gold signal. If not traders should not open a trade as there is more likely a chance that this gold signal may be a gold trading whipsaw.
Just like any other chart indicator in Gold Trading, xauusd price action trading strategy also has whipsaws and there is a requirement to use this strategy as a combination with other gold signals as opposed to just using this xauusd price action trading strategy alone.
Combining Gold Price Action Trading Strategy other Indicators - RSI and Moving Averages Gold Price Action Trading Strategy
