XAUUSD 20 Pips Gold Price Range Moving Average Gold Trading Strategy

20 XAUUSD Pips XAUUSD Price Range Moving Average XAUUSD Trading Strategies

The 20 pips xauusd price range moving average gold trading strategy is used with the 1 Hour gold chart and 15 minute xauusd chart. On this xauusd chart time frames we use the 100 and 200 simple moving average gold indicator.

Both the 1 Hour and 15 minute xauusd chart time frames will use the 100 and 200 Simple Moving Average (SMA Indicator) to determine the direction of the Gold trend.

The 1 Hour xauusd chart time frame checks the long term direction of the Gold trend, upward or downward trend, depending on the direction of the moving averages. All xauusd trades taken should be in this gold trend direction.

We then use the 15 min gold chart to find the optimal point to enter xauusd trades. Gold trades are opened only when the xauusd price is within 20 pips range of the 200 simple MA, if xauusd price is not within this pip range xauusd trades are not opened.

XAUUSD Uptrend/Bullish Market

To generate buy (bullish gold trading signals) using the 20 pips moving average Gold strategy, we shall use the 1hour and 15 minute xauusd chart time frame.

On the 1 hour xauusd chart time frame the xauusd price of the gold chart should be above both the 100 and 200 simple moving average. We then move to a lower xauusd chart time frame, the 15 min chart time frame to generate a gold trade signal.

On 15 minute xauusd chart time frame, when xauusd price reaches the 20 pips range above the 200 Simple Moving Average, we open a buy gold 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 gold trade can also be opened when the xauusd 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 Moving Average Buy Gold Trading Signal - Moving Average Gold Trading Strategy

XAUUSD Downtrend/Bearish Market

To generate sell (short gold trading signals) using the 20 pips moving average Gold strategy, we shall also use the 1 hour xauusd chart time frame and 15 minute xauusd chart time frame.

On the 1 hour xauusd chart time frame, the xauusd price should be below both the 100 and 200 Simple Moving Average. We then move to the 15 minute xauusd chart time frame to generate a gold trading Signal.

On 15 minute xauusd chart, when xauusd price reaches the 20 pips range below the 200 Simple Moving Average, we open a sell gold trade and place a stop loss 30 pips above the 200 simple moving average.

100 and 200 Simple Moving Average Sell Gold Trading Signal - Moving Average Gold Trading Strategy

With this gold trading strategy method xauusd price will generally bounce of these support and resistance levels because many gold traders watch these levels, and open similar xauusd trades at around the same point.

These support and resistance levels act as short term resistance or support levels within the xauusd price charts.

Profit Taking level for This Gold Trading Strategy

With this gold trading strategy the xauusd price will bounce and make a move in the direction of the original Gold 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.