XAU/USD 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 timeframes we use the 100 and 200 simple moving average MA xauusd indicator.
Both the 1 Hour and 15 minute chart timeframes will use the 100 and 200 Simple Moving Average (SMA Indicator) to identify the direction of the trend.
The 1H chart timeframe checks the long term direction of the trend, upwards or downward trend, depending on the direction of the Moving Averages. All xauusd trade positions taken should be in this trend direction.
We then use the 15 min chart to find the optimal point to enter xauusd trades. Trade Positions are opened only when the price is within 20 pips range of the 200 simple MA, if gold trading price is not within this pip range xauusd trade positions 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 timeframe.
On the H1 chart timeframe the price of the chart should be above both the 100 and 200 simple moving average. We then move to a lower chart timeframe, the 15 min chart timeframe to generate a signal.
On 15 minute chart timeframe, 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 tests/touches the 100 Simple MA 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 H1 chart timeframe and 15 minute chart timeframe.
On the H1 chart timeframe, the price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute 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 stoploss order 30 pips above the 200 simple moving average MA.
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, and open similar trade transactions at around the same point.
These support and resistance zones act as shortterm resistance or support areas 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 initial trend. This move will range from 60 - 70 pips.
The best gold profit taking level would therefore be considered to be 60 - 70 pips from the 200 SMA(Simple Moving Average).
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