Gold Analysis Training Course

Analysis Training Course

Gold Analysis is the science and art of forecasting future price movement depending on historical trading prices combined with Gold indicators. Gold Analysis Course - This Gold Analysis study often interprets the price data by studying a chart and looks for patterns & signals for buying and selling.

The history and origin of this Gold Analysis method dates back several hundred years to Japanese and Arabian markets, Gold Analysis involves using mathematical manipulation of price data to optimize buy & sell points. Use of this type of Analysis in modern computerized trading programs has become increasingly popular.

The information which the is studied and assessed is trading price movement to plan an entry or exit into a trade. The aim is to determine how the market is trending.

XAU/USD Analysis

This Gold Analysis - studies the supply and demand of gold in an attempt to identify in what direction the price will continue to head in.

While analysis deals with price & indicators it is just a measure of investor sentiment.

What to Look For

Find the Trend

The motto of analysis is: "the trend is your friend." Finding the prevailing trend will help you become aware of the overall direction and offer you better gold trading opportunities - especially when shorter term gold market movements give conflicting signals.

Daily charts are more ideally suited for identifying long term gold trends. Once you have found the overall trend direction then you generally open buy or sell gold orders in that direction.

Gold Trend or Range

No matter what trading price is doing, it usually falls into one of those two categories. If the price is moving in a setup or in one direction, you as a trader can use trend-lines to analyze & interpret where the price should go. If the market seems to be bouncing back and forth in a range, you as a trader can use support and resistance lines to make note of where to open buy/sell trade orders.

One of greatest aims of Trading Analysis studies and methods in the market is to determine whether a given gold will move in a trend in a certain direction, or if market will continue going sideways and remain range-bound. The most common Analysis method to determine this is to draw trend-lines which are used by traders to identify whether or not the current direction of the market will continue. Many investors avoid trading in a rangebound gold market & only buy or sell gold when there's a trend since this makes to-be more predictable.

For technical analysts the most critical gold tool is the chart. The purpose of a chart is to provide a visual illustration of price quotes (drawn on the y-axis) against time (drawn on the x-axis) for gold, this gold chart is used as a basis for making predictions of future trading price direction.

Gold Trendlines

The direction of these trend lines determines the market direction. A trend-line drawn moving upward represents a bullish market and a trend line drawn moving downwards represents a bearish market.

Support and Resistance

Support and resistance areas are points on a chart which tend to act as boundaries. A support level is generally a trough or low point on chart whereas resistance zone is the high or peak point on chart. These support and resistance levels are used as buy/sell points.

MAs XAUUSD Indicator

MAs gold indicator are used to display the average trading price over a given period of time. MAs indicators are referred to as moving because they calculate & reflect the latest price average in the movement of the prices.

Strategy

To be a successful gold trader you need to create a strategy. There is not one set strategy that is good for all traders. But Rather, each and every trader needs to develop their own strategy.

Gold Analysis is the most widely used strategy in the market and is used to decide the entry and exit points.

Market movements have identifiable repeating price patterns that have been studied over many years providing a thorough understanding of these market trends & how they can be used to form the basis of a good gold strategy.

There are many Trading Analysis tools available provided to facilitate this study

The beginner trader is advised to study each Trading Analysis tool separately to get working knowledge of the concepts & application for each Trading Analysis study. Once you understand one Trading Analysis method, keep on using it while studying others. Each Analysis tool tends to combine well when used with other Trading Analysis Tools.

Support & resistance levels are also used in many strategies. Support is defined as the level that is repeatedly seen as the bottom (floor) - when the price reaches this level it will tend to bounce. Resistance level is the ceiling, the upper boundary (ceiling) that trading price rarely trades above.

Support & resistance zones are valid for a period of time, until they are broken, When the market breaks through these support and resistance zones, the price is expected to continue in that particular direction. For example illustration, if the market rises above the previous resistance zone, it is seen as a bullish signal & the bullish movement should continue upwards.

Longer chart timeframes establish more stronger support and resistance zones. Traders can use these support and resistance zones to identify when to open a trade position or exit an open trade.

MAs is another common indicator used as to create strategies. Moving averages try to smooth out short term gold market price fluctuations giving a clearer picture of the price moves and trends. Traders can draw Simple Moving Average to determine trading price movement tendency to move up or down - trend.

If price crosses above simple moving average then it will keep on heading up.

If the price crosses below the Simple Moving Average then it will keep moving down

These are examples of trade strategies which can be used individually or combined.

Gold Traders use two or more Analysis studies to determine when to open an order when both Trading Analysis indicators support the same direction. If several Analysis indicators show that the market is moving towards a particular direction the a trader can trade with more reassurance than when he is only relying on one Trading Analysis indicator.

Fundamental analysis should also be used together to reinforce Trading Analysis findings, or vice versa. A trader should ideally take into account two or more Trading Analysis indicators when developing a Strategy.

Every strategy should provide clear guidelines about when to enter and exit a buy or sell gold trade, how much loss can be accepted if the market moves in the other direction and how much profit is expected. Following these simple Analysis guidelines can help you become successful in gold.

Get More Topics & Tutorials:

Trade Gold Trading