How Do I Use Trend Lines in Gold with Example?
Example of How to Use Trend-Lines Signals to Trade Upwards Trend
Traders should use the upward trend-line to open gold buy trades once the price tests/touches the upward trendline.
How to Use Trend-Lines Signals to Trade Upward Trending Market & Open Buy Trades
Example of How to Use Trend-Lines Signals to Trade Down-wards Trend
Traders should use the downward trend line to open gold sell trade transactions once the price tests/touches the downward trendline.
How to Use Trend Lines Signals to Trade Downwards Trend & Open Sell Trades
How to Use Trend-Lines Signals to Trade Gold
The trend is your best friend. Is a popular phrase among traders because you as a trader never should go against the market trend when trading gold. This is the most reliable strategy used to trade Gold because once the prices begin to move in one particular direction they can continue to move in that direction for quite some time within the trend - therefore using this trend trading technique presents opportunity to make profits from the market.
To identify a trend traders commonly use the trend lines. Trend lines are provided on the MT4 charts and traders can use these trend-line drawing tools on the MetaTrader 4 software to draw trend lines on charts.
Traders can then analyze trend movements on the charts using these trend lines.
Principles of How to Draw Trendlines on Charts
Use candle stick charts to draw trend lines
- The chart points used to draw the trend lines - upwards trend-lines are along the lows of the price bars in a bullish market. An upward bullish trend is defined by higher highs & higher lows of the price.
- The chart points used to draw the trend line - downward trend lines are along the highs of the price bars in a bearish market. A downwards bearish trend is defined by lower highs & lower lows of the price.
- The chart points used to draw the trend lines are extremes points - the high or the low price. These extreme price levels are important because a price close beyond these extreme tells traders the trend may be changing. This is an entry or an exit xauusd signal.
- The more times a trend-line is touched by xauusd gold price but it's not broken, the more powerful its signal.
Study More Tutorials & Topics:
- Ehlers Laguerre Relative Strength Index Trade Indicator Trading Analysis
- Best Stop Loss XAU USD System
- How Do You Draw Trendlines for Swing Gold?
- Fibonacci Expansion Gold Chart Levels Exercise vs Fibo Retracement XAU/USD Chart Levels Exercises
- Easy Gold Software & The Best XAU/USD Platform
- Setting a XAUUSD Schedule
- How to Place William Percent Range Indicator on Gold Chart
