What is a Gold Retracement?

What is a XAUUSD Price Retracement in XAUUSD Trading?

The xauusd price does not move up or down in a straight line. Instead the xauusd price moves up or down in a zigzag pattern called a gold trend - in this pattern the xauusd price moves upward in a gold trend then it retraces before resuming the gold trend direction - in a downward gold trend the xauusd price moves downward in the gold trend direction and then retraces before resuming the gold trend direction.

What is a retracement? A xauusd price retracement is a pullback of the xauusd price before the xauusd market resumes the original gold trend movement.

Example of Zigzag XAUUSD Price Movement: The example illustrated and explained below shows xauusd price moving up in a zigzag pattern showing xauusd price xauusd trend and xauusd price retracement.

The example illustrated and explained below shows movement in an upward market and xauusd price retracement.

What is a Retracement? - What is a Gold Retracement? - Gold Price Retracement Explained with Example

What is Retracement Trading in XAUUSD Trading?

1-2: Gold Price Moves Up - Gold Trend Direction

2-3: Gold Price Retracement

3-4: Gold Price Moves Up - Gold Trend Direction

4-5: Gold Price Retracement

5-6: Gold Price Moves Up - Gold Trend Direction

The retracement of xauusd price is explained on the above example - this represents a gold trading retracement in an upward xauusd trend.