How Do I Trade Price Consolidation in Gold Trading?
How Do I Analyze Price Consolidation in XAUUSD Trading?
Price consolidation in gold trading is when the prices stop moving up-wards or downwards in a trend and start to move sideways in what is known as a consolidation of price.
Price will continue to move sideways and consolidation of price will continue for a period of time until such a time that one side of the market - either the buyers or the sellers gain control of the market and either push prices upwards in an upward trend or push prices downwards in a down-wards trend.
Consolidation Patterns
Symmetric triangles are chart patterns with converging trend lines that form a price consolidation period and are used to trade the price consolidation.
The technical gold buy trading signal from a symmetrical triangle is the upside break of price consolidation, while a down-side break of the price consolidation is a technical gold sell signal. Ideally, a market breaks out from a symmetrical triangle before to reaching apex of the triangle chart pattern.
When these price consolidation patterns form we say that the market is taking a break before deciding the next market trend direction to move.
How Do I Trade Price Consolidation in Gold Trading? - How Do You Read Price Consolidation in Gold Trading?
However, this price consolidation pattern can't go on forever and just like in a tug of war one side eventually wins, below are two price consolidation pattern examples of how price consolidation eventually had a price break out and moved in one direction.
How Do I Trade Price Consolidation in Gold Trading? - How Do You Read Price Consolidation in Gold Trading?
How Do I Analyze Price Consolidation in Gold Trading?
How Do I Read Price Consolidation in Gold Trading?
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