MACD Gold Trading Strategy Tutorials Tutorial
MACD Trend Following Trading Strategies
Since the MACD indicator uses 26 and 12 Exponential Moving Average to draw the MACD indicator lines, we shall compare these two EMAs with the MACD gold trend following indicator to determine how these buy and sell signals are generated and how the MACD indicator can be used to generate trend following signals.
MACD XAUUSD Indicator - MACD Trend Following Strategies - MACD Gold Indicator Strategy - MACD and Moving Average Strategy
The MACD indicator is a trend following indicator meaning it generates gold trading signals that are leading compared to lagging indicators that lag behind the xauusd price.
MACD Trend Following Trading Strategies in Upward XAUUSD Trend
A buy gold trade is generated when there is a MACD fast line crosses above the signal line - this shows that there is an upward xauusd trend. However, as with any leading gold indicator these gold signals are prone to whipsaws/fake-out signals.
To eliminate the gold whipsaws it is good to wait for confirmation signals of the buy signals. The confirmation gold signal is when the two MACD indicator lines cross above the zero line mark, when this happens the buy signal generated is a reliable xauusd trading signal.
In the xauusd trading example illustrated and explained below, the Moving average gold indicator generated a buy signal, before the xauusd price started to move up. But it wasn 't until the MACD indicator moved above the zero line that the buy signal was confirmed, and the Moving Averages also gave an upward crossover gold signal. From experience it's always good to buy after both the MACD indicator lines move above zero center line mark - which shows there is an upward xauusd trend.
Where to Buy using MACD XAUUSD Indicator - Buy Gold Trading Signal - MACD and Moving Average Strategy
Sell XAUUSD Trade
A sell trading signal is generated when there is a MACD fast line crosses below signal line. However, just like the buy signal, these are also prone to whipsaws/ fake outs.
To eliminate the whipsaws it is good to wait for confirmation of the sell signal. The confirmation is when the two lines cross below the zero mark, when this happens the sell generated is a reliable xauusd trading signal.
In the xauusd trading example illustrated & explained below, the Moving average generated a sell confirmed after MACD moved below the zero line at the same time that the Moving Averages gave a crossover xauusd trading signal.
Where to Sell - MACD & Moving Average Gold Strategy - Using MACD XAUUSD Indicator - Sell Trading Signal
