Moving Average Support and Resistance Gold Trading Levels

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

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

Buy XAUUSD Signal

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

A buy gold signal is generated when xauusd price hits the Moving Average, turns and starts moving in the upward gold trend direction. The gold signal is confirmed when xauusd price closes above the Moving Average. Because many gold traders use the moving averages to generate xauusd trading signals, xauusd 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 XAUUSD Signal

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

A sell gold signal is generated when xauusd price hits the Moving Average, turns and starts moving in the downward gold trend direction. The gold signal is confirmed when xauusd price closes below the Moving Average. Because many gold traders use the moving averages to generate xauusd trading signals, xauusd 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 trend change and consequently the direction of gold. The direction change is reflected by the moving average gold 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