How to generate Signals for Gold Trading
As a xauusd trader one of the tutorials you must learn in trading the market is how to generate trading signals. A signal is just a set of trade rules which explain when to buy or when to sell gold.
For example, the simplest xauusd tradingtrade system is the Moving Average cross-over system which generates gold signals once two MAs crossover each other.
- Buy trade signal - MAs crossover pointing upward
- Sell trading signal - moving averages cross over pointing downwards
Trading System
To confirm the signals generated a trader will need to come up with a trading system and a set of trade rules for this xauusd system.
A system is a combination of two or more technical indicators and a set of written trading rules which are used to generate these trading signals with.
From the above trade system a trader can generate xauusd signals using the trade rules below
Buy trade signal
- Both Moving averages pointing upward
- RSI above 50
- Both Stochastics heading upwards
Sell trading signal
- Both Moving averages pointing downward
- RSI below 50
- Both Stochastics heading downward
An exit signal is generated when the MAs gives an opposite or RSI indicator give an opposite signal: A trading signal in the opposite market direction.
Learn More Lessons & Tutorials:
- How Can I use MetaTrader 4 XAUUSD Demo Practice Account?
- Risk Management in Gold Market Tutorial Course
- What's DD XAU/USD Account Meaning?
- How Can I Draw MT4 Channel Trading Indicator?
- Trend Line Break XAUUSD Trend-line Reversal Signals
- How Can a Beginner Gold Trader Start XAU USD?
