Momentum Gold Trading Analysis and Momentum Trading Signals

The Moving Average Envelope indicator creates two lines around the xauusd price forming a channel. The upper and lower channel lines are drawn at an equidistant level above and below the Moving Average. The distance to draw the envelopes is calculated using a percent or a number of pips.

Moving Average Envelope

XAUUSD Trading Analysis and Generating XAUUSD Trading Signals

MA Envelope can be traded using several different trading rules. The main method of generating gold trading signals is to use the xauusd price penetrating the upper channel or lower channel.

Bullish signal

Gold Price penetrating the upper channel is a long buy gold signal.

Buy Gold Trading Signal

Bearish signal

Gold Price penetrating the lower channel is a short sell gold signal.

Sell Gold Trading Signal

In a trending market the Moving Average points upwards in an up gold trend market or downwards in a down gold trending market. It is good to use the envelopes together with other technical indicators such as gold trend lines so as to confirm the signals generated.