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 trades

Drawing a Gold Up-ward Trend-Line

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

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

The upward trend setup will show the general direction of the market as bullish therefore traders only will open buy long trades as long as price is within this up trend setup and within the support areas.

These support levels are the levels where if the market retraces then this support points will provide strong 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 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 trade transactions would have been executed with minimum amount of draw down/retracement.

Upward XAUUSD Channel

A channel is drawn by drawing a line that's parallel to the upward trend line & then adjusted to touch the tops boundary of the price movement. This then forms a channel - upward channel & as long as price stays 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 traders to show levels where it-is best to book profits. Traders will book some profit once the price touches upper channel & wait for another retracement before opening a buy trade again.

Study More Courses & Lessons:

Forex Traders Seminar Gala

Forex Traders Seminar

Gold Broker