Moving Average Support and Resistance Levels

Moving Averages can be used as points of support and resistance on gold trading charts.

When gold trading price reaches the moving average, the Moving Average level can act as a point of support or resistance for the gold trading price.

Buy Gold Trading Signal

If gold price is on an upward gold trading trend and starts to retrace, then most gold traders might wait to buy at a better gold trading price when the gold price hits a support level. Gold Traders will sometimes use the Moving Average to determine the support level.

A buy gold trading signal is generated when gold price hits the Moving Average, turns and starts moving in the upward gold trading trend direction. The gold trading signal is confirmed when gold trading price closes above the MA. Because many gold traders use the moving averages to generate gold trading signals, gold price will normally react to these levels.

A stop loss should be set just below the Moving Average gold trading Indicator. Ideally it should be set a few pips below the previous low.

Buy Gold Trading Signal - How to Trade Gold with Moving Average Strategy

Sell Gold Trading Signal

If the gold trading price is on a downward gold trading trend and starts to retrace, then most gold traders might wait to sell at a better gold price when the gold trading price hits a resistance level. Gold Traders will sometimes use the Moving Average to determine the resistance level.

A sell gold trading signal is generated when gold price hits the Moving Average, turns and starts moving in the downward gold trading trend direction. The gold trading signal is confirmed when gold price closes below the MA. Because many gold traders use the moving averages to generate gold trading signals, gold price will normally react to these levels.

A stop loss should be set just above the gold trading moving average indicator. Ideally it should be set a few pips above the previous high.

Sell Gold Trading Signal - How to Trade Gold with Moving Average Strategy

Resistance Level turns Support Level

In Gold Trading - When a resistance level is broken it turns into support and vice versa.

This happens when the fundamentals of a gold trading trend change and consequently the direction of a gold trading instrument. The direction change is reflected by the moving average gold trading indicator, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)

Resistance Level turns Support Level - Moving Average Gold Trading Strategy Example