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 strategy can increase your chances of becoming more successful in xauusd.

For traders who want to learn about strategies there are 50 strategies listed in the strategies section of this trading strategy. This strategy section also shows traders how combine these strategies to develop a xauusd system. The trading is a set of trade rules that will be used by traders to generate trading signals. For example the trade system rules will specify how two 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 trading once you decide what type of trader you are and 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 will use your scalping strategy & only open traders for a couple of minutes. If you are a trend trader you will use your strategy after you have determined the trend of the market. If the market trend is upward you will use your strategy to open buy trades.

If you are a day trade you'll use your trading strategy to open trade positions that will only be opened for a couple of hours. Your trades should all be closed during the day and you will not hold your trades transactions overnight. As for the method which may be that of trend following you will first draw trend-lines on the chart to determine the overall market trend & 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 in their technique traders will then apply their strategy to open trades.

Types of XAUUSD Methods

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

1.Gold Trend Trading

2.Range Trading

Gold Trend Trading

In this method a xauusd trader will first of all determine the overall price trend before applying their trade strategy to open trade positions.

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

A trader may use trend lines or MAs to determine the overall price trend. After determining the price trend then the trader can use their trade strategy to open trade positions.

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

Range Trading

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

The most popular technique between these two is the trend method. Traders should always try to trade with the trend method as this technique 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 is consolidating traders should try to trade the market only when there is a trend. After determining 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 overall market trend.

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

1.Method

2.Trading Strategy

After coming up with this two you'll then combine these two & use these to determine when to buy or close 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 & strategy & once you've gained experience to trade with these two you can then open an account & begin trading the live xauusd market.

Get More Tutorials and Courses:

Trade Gold Trading

Learn Trading Strategies

Types of XAUUSD Methods