How to Trade a Gold Trading Up Gold trend Reversal?

How to Trade Upward Gold Trend Reversal: How to Identify a Gold Upward Trend Reversal Gold Trading Signal

Up XAUUSD trend XAUUSD Trading Reversal

When xauusd price breaks below the upward gold trend line (support) the xauusd market will then move downwards

How to Trade an Up Gold trend Reversal? - Strategy for Trading a Gold Upward Trend Reversal

Upward XAUUSD Trend Reversal Trading Strategy

After xauusd price has moved in an upward direction for an extended period of time within a up gold trend it reaches a point where it stops moving within the gold upward trend. When this happens we say that the upward gold trend line has been broken and this is interpreted as a gold upward gold trend reversal signal.

Since the upward gold trend line is the point of support and this point of support has been broken after a up gold trend line break - then we expect the xauusd price to move downwards towards the opposite direction and this is interpreted as a up gold trend reversal signal.

When this happens gold traders will close the open gold buy orders which they had bought. This is called taking profit.

This gold trend reversal trading signal is considered to be complete with the formation of a lower high of the gold price. This also provides a trading opportunity to open sell xauusd trades once the up gold trend line is broken - gold trading reversal signal.

NB: Sometimes when xauusd price breaks its gold upward gold trend it might first of all consolidate before moving in the opposite direction. Either way it is always good to take profit when the xauusd market up gold trend reverses.

To trade this upward gold trend trading reversal setup as a gold trader once you open a new gold trade in the direction of the gold trend reversal the gold prices should immediately move in that direction - downward, in a gold price breakout manner. This means that the gold prices should immediately move in that downwards direction without much of a resistance.

If on the other hand the gold prices do not immediately move in the downwards direction of the xauusd price breakout then it is best to close out the sell gold trade because it means that the up gold trend is still holding.

Another tip is to wait for the up gold trend line to be broken and for the xauusd market to close below it so as to confirm this upward gold trend reversal signal.

What happens is that most gold traders open xauusd trades waiting for a gold trading reversal even before the up gold trend is broken, only for the xauusd price to touch this gold upward gold trend line and for the current market up gold trend direction to hold and gold to continue with the current market upward xauusd trend.

Therefore, when trading this up gold trend reversal setup it is best to wait until the xauusd price breakout has been confirmed by xauusd price closing below the gold trend line.

• Upward Market Gold Trend Direction Reversal - this gold trend reversal gold signal is confirmed once the xauusd price closes below this upward gold trend line, this should be the correct time to open a sell gold trade, so as to avoid a gold trading whipsaw.