Technical Analysis of Moving Average Technical Indicator
Gold Trend Identification
The trading Moving Average indicator can be used as an technical indicator for generating signals. A buy or a sell signal is generated when price either moves above or below the moving average indicator, respectively.
If the Moving Average is moving upwards in diagonal manner then the general market trend is up-ward.
If the on the other hand the Moving Average is heading downwards in diagonal manner then the general market trend is downwards.
Upward Trend/Bullish Trend
If the Moving Average is moving up, then the trend is upwards & the signal generated is a buy/bullish trade signal.
As long as the price is above the moving average then the trend will remain as an upward trend. The moving average will act as a "support level" and trading price action of the chart candlesticks should not close below the Moving Average.
Buy Signal
When the price moves above the Moving Average and closes above the moving average, a buy signal is generated.
Gold Traders, who want to confirm the trade signal before implementing it, should wait until the Moving Average line turns and starts to move in an upwards trend direction. It is always best to wait for the confirmation signal to reduce chances of a trading whipsaw.
Upward Gold Trend - How Do I Day Trade Gold: A Detailed Guide to Day Trade Methods
Downwards Trend/Bearish Market
If the Moving Average is moving down, then the trend is downwards and the signal generated is a sell/short trade signal.
As long as the price is below the MA then the trend will remain as a downward bearish trend. The Moving Average will act as a "resistance level" and trading price action of candlesticks should not close above the MA.
Sell Signal
When the price moves below the Moving Average and closes below the moving average, a sell signal is generated.
Traders who want to confirm the signal should wait until the Moving Average line turns and starts to move in a downwards direction. This will reduce the chance of trading a trading whipsaw.
Downward Gold Trend - How Do I Day Trade Gold: A Detailed Guide to Day Trade Methods
XAUUSD Range Market signals
Range Trading Market signals can also be identified using the MA Gold Indicator.
Moving Average Crossover Method Strategy
The moving average crossover method is also another signal generation strategy that is more favored by traders compared to the above signal generation strategy method. Moving average crossover strategy is also the simplest form of a system widely used by online traders. This Moving Average crossover method is combined with other technical indicators to form more complex gold systems & strategies.
