Learn Trading Courses

Gold ranks as one of the biggest trading markets worldwide. Traders buy into gold for speculation. Key reasons draw them to gold trades.

Trading leverage lets traders earn more in gold with less of their own money. Gold traders borrow funds from their online broker to boost their trades.

Liquidity - The fact that gold trading is one of the biggest financial trading market in the globe means that there are very many traders trading the market at any time of the day or night during the market week. The fact that there are many traders investing in this market make the market a very liquid one meaning that a trader can open & close trade in a matter of a few seconds.

Low Transaction Cost - Because so many people trade gold all the time, trading costs are lower because there's a lot of trading going on. The only trading cost the trader pays is the spreads: traders don't pay any other costs. The spread only happens when a trader starts a trade: so, if a trader doesn't trade, they don't pay anything.

This learn tutorial introduces the various educational tutorials that are available to technical traders or traders who are interested in learning analysis. After traders have mastered the fundamentals of trading, they may begin learning more about analytical methods they may employ in their trading.

Tutorials on XAU/USD analysis can assist beginners in understanding different technical analysis concepts.

Basics of Analysis

Candle Charts

People who use technical analysis usually rely on charts as their main tool. There are three kinds of charts: line charts, bar charts, and candle charts. Traders often use candlestick charts more than the others. That's because the candlestick chart has a look that is easy to see and understand, and it shows clearly how market prices change by using colors for different movements: like blue when prices end higher than where they started, and red when prices end lower than where they started. Besides the colors, these candles show how far apart the opening and closing prices are, and this creates the main section of the candle. This section looks a lot like the wax part of a real candle. The highest price is shown with something known as a shadow, which is a thin line that sticks out above the candle and looks similar to the wick on a real candle. There's also a shadow that is drawn under the candles and it shows the lowest price it reached.

Candles provide info called OHLC. This stands for opening price, high, low, and closing price.

Japanese candlesticks came from Japan. A rice futures trader named Homma Munehisa created them in the 18th century. He traded in the Tokyo market and built a fortune. Reports say he won over 100 trades in a row using them.

Besides showing price changes with charts, traders also use patterns made by candlesticks to measure how strong the price change is. Traders also look at these candlestick patterns to understand how to read the clues from the different patterns. Traders who want to learn about the different candlestick patterns can check out our learning section in the trading analysis lessons. Here are some of the candlestick patterns used for trading:

1.Long and short Candles

2.Spinning Tops & Doji Candlesticks

3.Hammer Candle Pattern and Hanging Man Candle Pattern

4.Inverted Hammer Candle Pattern & Shooting Star Candle Pattern

5.Piercing Line Candle Pattern and Dark Cloud Cover Candlestick Pattern

6.Morning Star Candles, Evening Star Candles and Engulfing Candlesticks Patterns

Support and Resistance Areas

Support and resistance levels define zones where price struggles to break through and move further. These technical levels serve as key indicators for traders when analyzing market momentum and reversal potential.

At technical levels, traders often view the price of a financial instrument as either undervalued (cheap) or overvalued (expensive).

Support

Support prevents an asset's price from falling further, effectively serving as a floor. These levels act as barriers that stop the market from pushing prices downward beyond a certain threshold.

Resistance

Resistance prohibits the price of an asset from getting pushed upward. Resistance levels are thence regarded as a ceiling because these price areas prevent the market from moving prices upwards.

Hence, these levels may & might be used by trader to determine where to open trade positions at the points where there's a high risk to reward ratio. For example illustration a trader may open/execute a buy trade position at a support level & place a stoploss order a couple of pips below that level. The trader buys at this point because they perceive the price to be cheap. A trader might open a sell trade position at a resistance zone & place a stoploss order a couple of pips above the resistance zone. The trader sells at this point because they perceive that at that point the price is very expensive and hence there will be less people willing to buy gold because the price is very expensive and hence the price is likely to start moving down soon rather than continue to move upward.

TrendLines

Trend lines are used to determine the general direction of price.

Sometimes support and resistances are formed diagonally in the same way like a stair-case. This forms a trend, a trend is a sustained movement in one specific direction either upwards or downward.

A trendline depicts these points of support & resistance for price.

Trendline analysis involves using line studies to forecast potential price movements.

A trendline is a straight, diagonal line connecting two or more price points, stretching into the future to act as support or resistance.

The underlying principle of Trend-Lines is that market activity follows directional paths. TrendLines are utilized to demonstrate three distinct elements.

The general direction of price movement up/down.
The power of current price movement and
Where future support & resistance of the current price move are likely to be located at.

If a trendline appears to be going one way, the market will usually move that way for some time, until the trendline breaks.

Upward trendline connects rising lows. It slopes up as prices climb.

Downward trend line - If the price goes down, then a line that also goes down is created. This line is called a downward trend-line.

MAs Trading Indicator

Traders use moving averages in gold markets to gauge price direction. Moving averages follow trends and show if prices head up or down.

The most used way to figure out which way the trend is going is by using 2 MAs to make the MA crossover system. The MA Moving Average cross over method is talked about in our strategies part. The Moving Average cross over trading method has 2 MAs, one with a shorter time and the other with a longer time: for example, someone might use the 5-time Moving Average and the 7-time MA: when the price is going up, the two MAs will also go up, and when the prices are going down, the two MAs will also go down. Traders can also tell when a trend changes direction because the two MAs will cross each other when the price movement changes direction. Gold traders use this cross-over signal to know when to start a new trade after the crossover signal happens and the 2 MA starts moving in the same direction. This cross-over signal also helps decide when to end a trade and take profit after there is a cross-over in the other direction.

Bollinger Bands Indicator

Bollinger Bands are a widely used trading indicator that follows trends, helping to identify the overall price direction. This indicator consists of three lines, which include the upper band, lower band, and middle moving average line.

·Middle band - this is a MA of 20 price periods

·Upper Band - shows upper limit of price

·Lower Band - shows lower limit of the price

Middle band will show the overall direction of the price trend whether up/down.

At the upper band, place a sell order if prices fall. Or end a buy trade and set take-profit there if prices rise.

The lower band acts as a key level where upward trends signal buy opportunities. Alternatively, if the market trends downward, traders may close sell trades and secure profits at this level.

XAU/USD Fibonacci Retracement Levels

Traders rely on Fibonacci retracements to predict where prices might pull back. They use these levels to pick spots for new trades after a retrace.

Information concerning Fibonacci retracement levels is detailed within the educational lessons area of this website, under the technical analysis topics. Traders can acquire knowledge on employing Fib retracement levels, which specific levels are frequently utilized for opening trades, and the process for charting these retracement levels using the Fibonacci retracement indicator.

This site covers all these trading analysis methods in the strategies area. Traders can learn more about them there. See examples of how they work in trades. The strategies section includes many screenshots. These show how to draw the tools on charts. It explains how they create signals.

Learn More Topics and Guides:

Trade Gold Trading