How Can I Tell a Bearish Gold Trend?
Definition of a XAUUSD Downward Trend
How Can I Tell a Bearish Gold Trend? - How Can I Define a Bearish Gold Trend?
A bearish gold trend or a downwards gold trend is defined by xauusd trading prices closing with lower highs and lower lows. This is the definition of a bearish xauusd trend.
The example illustrated and explained below defines the bearish gold trend setup
Simple Way to Identify Gold Trading Bearish Gold Trend & Downwards Gold Trends
Gold Trend is the xauusd market tendency of xauusd trading prices to move in a particular direction for a period of time
For a Downward Gold trend the xauusd trading price will move in a general market direction downward.
This means xauusd trading prices will close lower than where they opened.
Trading XAUUSD Identify XAUUSD Downward Trend
A downward gold trendline is drawn above the downward gold trend setup formed by consecutive lower highs, the downwards gold trendline must connect at least 2 highs, with the most recent high being lower. For our down gold trend examples we shall use the MT4 technical analysis software charts to illustrate an example of the downward trend.
Since xauusd trading price moves downward in a zigzag manner gold traders normally draw a downward gold trendline which shows the general downward gold trend direction. In gold trading analysis, this general direction is referred to as the TREND by traders. In technical analysis definition we can define this down gold trendline is plotted on a Gold chart showing the resistance levels (bearish market direction).
Definition of a Gold Downward Trend
A down gold trend bearish market gold trend occurs when the price forms a series of lower highs and lower lows. Each price high is lower than the previous high - lower high, & each low is lower than the previous low - lower low therefore showing bearish xauusd price trend movement.
Down Gold trend gold trend lines gain more validity each time xauusd price touches the downwards gold trend line but doesn't penetrate the downwards gold trend-line. A down trend bearish market remains the general trend direction until this series of lower highs and lower lows is broken - gold trendline break.
