What's a Gold Trend?
A gold trend is the tendency of xauusd prices to move in one specific direction for certain period of time.
Gold trading prices generally move in trends, the gold trend direction can either be upwards or downwards.
Gold Traders use gold trading tools such as gold trend lines to identify gold trends.
Gold Trend lines help to define entry and exit points for trades that are open by traders.
The trend line define the xauusd market trend & as long as trading prices continue to move within the trend line the traders will keep their trade open. Traders will only close their open gold trade once the xauusd trading prices stop moving within the trend-lines.
The two types of gold trends are:
Upward Gold Trend - Drawn using an upward gold trend line
Downward Gold Trend - Drawn using a downwards gold trend line
Upward Gold Trend
Course: How to Draw & Trade Upwards Gold Trend
Upwards Gold Trend - Drawn using an upward gold trend-line
Downwards XAUUSD Trend
Course: How to Draw & Trade Downwards Gold Trend
Downwards Gold Trend - Drawn using a downwards gold trend-line
The MT4 platform provides charting tools for plotting trends on gold charts. To draw xauusd trend on gold charts traders can use the trend line plotting indicator tool provided on the MT4 software that is shown below.
Definition and Meaning of a Gold Trend & How to Trade a Gold Trend
To draw a gold trend line in MetaTrader 4 platform & choose point A where you want to start drawing and then point B where you want the it to touch. You can also right click in the trend-line & on the properties option select the option to extend its ray by ticking the "ray check box", if you do not want to extend it, then uncheck this option in your gold trading platform.
The gold trend is your friend. Is a popular saying among gold traders because you should never trade against it. This is the most reliable gold trading method to trade Gold Trading because once xauusd trading prices start to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw & Define XAUUSD Trend
Use gold candlestick charts
- The points used to draw the gold trend are along the lows of the xauusd price bars in a rising market. An upwards bullish gold trend move is defined by higher highs & higher lows.
- The points used to plot are along the highs of the xauusd price bars in a falling downward market. A downwards bearish gold trend move is defined by lower highs & lower lows.
- The points used to draw the trend lines are extremes points - the high or the low xauusd trading price. These xauusd trading price extremes are important because a close beyond the extreme tells gold traders that the gold trend might be changing. This is an entry or an exit xauusd trade signal.
- The more often a gold trend is touched by xauusd trading price but it's not broken, then the more powerful the gold trend signal.
