XAUUSD 20 Pips Price Range Moving Average Strategy
20 Pips Price Range MA Strategies
The 20 pips trading price range moving average strategy is used with the 1 Hour chart and 15 minute chart. On this chart time frames we use the 100 and 200 simple moving average xauusd indicator.
Both the 1 Hour and 15 minute chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the trend.
The 1H chart time frame checks the longterm direction of the trend, upwards or downward trend, depending on the direction of the MAs. All xauusd trades taken should be in this trend direction.
We then use the 15 min chart to find the optimal point to enter xauusd trades. Trades are opened only when the price is within 20 pips range of the 200 simple MA, if xauusd trading price is not within this pip range xauusd trades are not opened.
XAUUSD Uptrend/Bullish Market
To generate buy (bullish trading signals) using 20 pips MA Gold strategy, we shall use the 1hour and 15 minute chart time frame.
On the 1 hour chart time frame the price of the chart should be above both the 100 and 200 simple moving average. We then move to a lower chart time frame, the 15 min chart timeframe to generate a trade signal.
On 15 minute chart time frame, when price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy trade and place a stop loss 30 pips below the 200 Simple Moving Average. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal Gold volatility its best to use 30 pips stop loss.
A buy trade can also be opened when price touches the 100 Simple moving average, provided it’s not very far from the 200 Simple Moving Average. Normally the 100 Simple Moving Average will be within the 20 pips range of the 200 SMA.
100 and 200 Simple MA Buy Signal - MA Strategy
Downtrend/Bearish Market
To generate sell (short trading signals) using 20 pips MA Gold strategy, we shall also use the 1 hour chart time frame and 15 minute chart time frame.
On the 1 hour chart time frame, the price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 min chart timeframe to generate a trading Signal.
On 15 min chart, when price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple MA Sell Signal - Moving Average Strategy
With this gold strategy method trading price will generally bounce of these support and resistance levels because many traders watch these zones, & open similar trades at around the same point.
These support and resistance levels act as short term resistance or support levels within the price charts.
Profit Taking level for This Strategy
With this gold strategy the price will bounce & make a move in direction of the original trend. This move will range from 60 - 70 pips.
The best gold profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.
