Learn Trading Strategies

Before coming up with a plan a trader must learn about the various strategies that they can sue to trade gold. Coming up with the right trading strategy can increase your chances of becoming more successful in xauusd.

For traders who want to learn about strategies there are 50 trading strategies listed in the strategies section of this strategy. This trading strategy section also displays traders how combine these strategies to develop a xauusd system. The trading is a set of trade rules that will be used by the Gold traders to generate trading signals. For illustration the trade system rules will specify how 2 or more technical indicators will be used together to generate a buy or sell signal.

As a trader the strategy you choose should be applied in your once you make a decision what type of trader you're & what type of method you will be using to analyze the gold market moves.

For example you may decide you as a trader want to be a scalper you'll use your scalping trading strategy & only open trade positions for a couple of minutes. If you're a trend trader you'll use your strategy after you have determined the trend of the price. If the market trend is upward you'll use your strategy to open buy trade positions.

If you're a day trade you'll use your trading strategy to open trade positions that will only be opened for a couple of hours. Your trade positions should all be closed during the day & you will not hold your trades/transactions overnight. As for the technique which might be that of trend following you'll first draw trend-lines on the chart to determine the over-all trend and after that you will then apply your strategy to open trades.

In analysis there are various techniques used to trade gold which a trader might use to ascertain which of these techniques of trading they will be using when trading the market. After select and choose in their technique/method traders will then apply their strategy to open trades.

Types of XAU USD Methods

There are two general techniques of trading the market, these are:

1.Gold Trend Trading

2.Range Trading

Gold Trend Trading

In this technique and method a gold trader will first of all determine the over-all price trend before applying their trading strategy to open trade positions.

To determine the trend - this can either be an upwards trend or a downwards trend.

A trader may use trend lines or MAs to determine the over-all price trend. After figuring out the price trend then the Gold trader can use their trading strategy to open trade positions.

For example a trader may determine that the price trend is upwards by using MAs. The trader might then use a technical indicator like Bollinger bands & open trade positions once the price retraces to the lower band because this lower band will act as the support level of price. Therefore the strategy that the Gold trader will be using is the trading strategy of resistance and support levels and the Gold trader will be using Bollingers to determine these points and open and close trades based on these points.

Range Trading

Range trading is a method of trading gold that move within a particular band of prices and only oscillates between these two points without moving much outside these two points.

A trader then will use the trading strategy of support and resistance to determine which levels to execute buy/sell trade transactions. The trader will draw a support line & a resistance line. The support level will be used to execute buy xauusd trades and the resistance level will be used to open sell trades.

The most popular technique/method between these two is the trend method. Traders should always try to trade with the trend technique as this technique/method is the most reliable technique when it comes to trading gold. Even though sometimes the market will be trending & at other times the market will be heading in a range when the market price is consolidating traders should try to trade the markets only when there is a trend. After figuring out the trend traders will then use their strategy to determine when to open buy or sell xauusd trades that are in the direction of the general market trend.

Once you've decided what type of trader you are: scalper, day trader or swing trader you should then create the following:

1.Method

2.Strategy

After creating this 2 you will then combine these two and use these to determine when to buy or close out trades.

You can then practice trading on the demo account so as to determine the profitability of your technique & strategy. You will then use the results to improve the profitability of your method and strategy & once you have gathered experience to trade with these two you as a trader can then sign up an account & begin trading the live gold market.

Get More Lessons & Courses:

Trade Gold Trading

Learn Trading Strategies

Types of XAU USD Methods