Important Indicators for Traders

XAUUSD technical indicators which are used in xauusd are used by traders to determine the trend direction as well as the strength of the trend.

XAUUSD price either moves in xauusd trend or moves in xauusd patterns. XAUUSD trend movements tend to repeat themselves. XAUUSD price patterns also tend to repeat themselves. These xauusd price patterns are commonly formed on the price charts and xauusd traders use xauusd indicators so as to try and analyze these xauusd price patterns & trend movements on xauusd charts.

Best Indicators for XAUUSD Trading

XAUUSD traders should choose xauusd indicators that best suit their xauusd trading style - there are a variety of indicators from which xauusd traders can choose from. However, there are some popular xauusd indicators that are commonly used by many traders.

Moving Averages Indicators

XAUUSD moving averages are used by many traders as xauusd trend following indicators & these moving averages are used to determine the direction of the trend whether upward or downward. There are 2 types of commonly used xauusd moving averages & these are - SMA, simple moving averages and EMA, exponential MAs moving averages.

MAs are used to smooth out the price movement and also to indicate the general direction of prices.

This means that xauusd traders use the MAs to generate xauusd signals & to determine the general xauusd trend direction in which to open trades.

XAUUSD moving averages are used by traders to signal a xauusd trend. To signal a xauusd trend traders will use 2 moving averages a shorter period moving average and a longer period moving average & a xauusd trend is trading signal once the shorter period moving average crosses the longer period moving average.

When the short term moving average crosses above the long term period moving average then this is interpreted as an upwards xauusd trend.

When the short term moving average crosses below long term period moving average then this is interpreted as a downwards xauusd trend.

SMA - simple moving average weights xauusd periods equally when calculating the moving average and therefore SMA moving average is slower to react to recent xauusd price changes.

EMA - Exponential moving average weights the recent xauusd price period more when calculating the moving average and thus the EMA moving average is quicker to react to recent xauusd price changes.

XAUUSD Buy and XAUUSD Sell Signals

XAUUSD buy signals are generated when shorter period moving average crosses above the longer period moving average.

XAUUSD sell signals are generated when the shorter period moving average crosses below the longer period moving average.

Bollinger Bands Technical Indicators

Bollinger Band xauusd indicators are used to analyze xauusd price market volatility. Bollinger bands indicator adjusts itself to the market volatility - the Bollinger bands widen when the volatility of price increases - the Bollinger bands tightens & narrows when the volatility of price decreases.

Moving Average Convergence Divergence Technical Indicator

MACD is a xauusd indicator that is used to analyze the momentum of price. MACD is also used to determine if the prices are moving higher or the prices are moving lower. When MACD indicator is above the center line xauusd prices are moving higher - when MACD indicator is below the centerline then xauusd prices are closing lower.

MACD indicator is plotted as 2 lines MACD FastLine & MACD Signal-Line -

When MACD FAST Line or MACD Line crosses above the MACD SignalLine this is interpreted as a Buy Trading Signal

When MACD FAST Line or MACD Line crosses below MACD SignalLine this is interpreted as a Sell Trading Signal

RSI Indicator

RSI indicator is used to determine if prices are generally closing higher than where they opened or closing lower that where they opened.

XAUUSD Buy and XAUUSD Sell Signals RSI Indicator

Buy XAUUSD Signal - RSI indicator above 50 - shows xauusd prices are generally closing higher than where they opened and this is interpreted as a buy signal.

Sell Trading Signal - RSI indicator below 50 - shows xauusd prices are closing lower that where they opened and this is interpreted as a sell signal.

As a trader the indicator you choose will depend on your xauusd trading style - traders can also decide to use a combination of indicators to come up with a xauusd strategy that uses two or more xauusd indicators that will be used to confirm signals.

Learn More Courses & Lessons: