What is Price Action in Gold Trading?
Gold xauusd price action is the analysis of price moves that are plotted on charts.
Gold Trading xauusd price action analysis uses line studies or price action patterns to try & determine the trend of the price chart.
Gold 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 Trade Strategy
A pin-bar is a market trend reversal setup on a price chart which shows an obvious change and shift in market sentiment during that particular trading price 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 title Pin Bar - occurs and forms after an extended move upwards 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 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 gold price charts to trade XAUUSD, without the use of trading chart trading indicators. When trading with this method, candlestick charts are used. This strategy uses lines and pre determined patterns like the 1 2 3 pattern that either develops and forms as one single price action pattern or series of price action setups.
Traders use this price action strategy because this market analysis is very objective & allows the one to analyze the price market moves based on what they see and observe on the charts and market movement analysis alone.
This trading strategy is used by many traders: even those who use technical indicators also integrate some sort of price action in their strategy.
Price Action 1 2 3 Break-out Strategy
This price action strategy uses 3 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 the market moves above the peak the signal is long, if it moves below the trough the trade signal is to short. The break out of point 1 or point two it forms the third point.
Gold Price Action 1.2.3 Break-out Strategy Examples
Combining Together Price Action 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 in the direction of the signal. If not traders shouldn't open a trade 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 Together Price Action Strategy other Indicators - RSI and MAs Price Action Trade Strategy
More Guides & Topics:
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- Different Types of XAU USD Platforms
- Consolidation Patterns and Symmetrical Triangles XAU/USD Pattern
- How to Add StopLoss XAU/USD Orders in MT4 Charts
- How Do You Place XAUUSD Symbol in MetaTrader 4 Android App?
- What's XAU USD Demo Trading Account MT4 Trading Software?
- Gold Signal of a XAUUSD Consolidation Pattern
- How Do You Activate a MT5 Automated Trading Robot in MetaTrader 5 Software Platform?
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- How to Read Fibonacci Retracement Levels and Fibonacci Expansion Levels in Gold
