Trade Gold Trading

How Do I Trade a Gold Uptrend

Up trend is when price of a chart is moving higher & higher. Gold Trading prices generally close higher than where they opened.

How to Trade Upwards Trend: traders use upward trend direction to open buy trade positions

Drawing a Gold Up-ward Trend-Line

When the market moves upwards it forms higher highs & higher lows forming a bullish movement - upwards trend. An upwards trendline then can be drawn by connecting/joining the higher lows of price.

To draw this upwards trend set-up we use support areas. To draw the upward trend line correctly two supports are needed. When price tests/touches the upward line we open buy xauusd trades and place stop loss just a couple of pips below the upward trendline. The upward trendline below shows an example of this upwards trend.

How Do I Trade a Gold Uptrend? - How Do I Trade an Uptrend? - Upward Trend in Trading Technical Analysis

Strategy for Transacting a Upwards Trend - Drawing a Upward Trend Line

The upward trend setup will show the general direction of the price as bullish hence traders only will open buy long trade positions as long as price is within this up trend setup & within the support areas.

These support levels are the levels where if the market price retraces then these support points will give major supports for the price. This is why many buyers will wait til price retraces downward and hits these retracements levels on the upwards trend-line to open buy xauusd trades. Trades opened at these technical levels have a high Risk:Reward Ratio and have little draw down.

In the above setup the trader would have opened buy xauusd trades form the signals generated at support 1, support 2, support 3 and these buy xauusd trades would have been executed with minimum amount of draw down/retracement.

Upwards XAU USD Channel

A channel is drawn by drawing a line that's parallel to the upward trendline & then adjusted to touch the tops boundary of the price movement. This then forms a channel - upward channel and as long as stays and remains between these two channels the bullish market trend movement will continue heading up.

How to Trade an Upward Trend - How Do I Trade a Uptrend? - How Do I Trade an Uptrend

Upwards Channel & Upward Trend Trading Method

Trading the Upwards Channel

This upward channel is used by Gold traders to show the levels where it-is best to book profits. Traders will book some profit once the price tests/touches upper channel and wait out for another retracement before opening a buy trade position again.

Study More Guides & Tutorials:

Forex Traders Seminar Gala

Forex Traders Seminar

Gold Broker