XAUUSD Trading Long & Short and Trading Charts
In XAUUSD, there are two types of trades, these are:
- Long (buy) - long is if the trend is buy/bullish.
- Short (sell) - short is if the market trend is sell/bearish.
Buying/Long and Selling/short Both terms, refer to things we do when open a trade.
Buying Long = term to use when buying & when opening a trade.
Selling short = term to use when selling and when opening a trade.
Long - Long is another term used to refer to buying, If a trader goes long it means that he buys the Gold pair that is heading in an upwards trend. When the price is moving in an upward trend the market trend is referred to as bullish.
Short - Short is a term used to refer to selling of Gold pair that is going in a downwards trend. When the price is going downwards then it is referred to as a bearish trend.
Basically the term, "selling short" can be refer to selling XAUUSD in the online XAUUSD trading markets. Selling short is used to transact a financial instrument (for example Gold) that is predicted to depreciate in value compared to another, when this financial instrument is sold then it is the same as not holding value in this instrument and holding the same value in the other currency - in our example selling Gold and holding the value in the currency USD.
Buy/LongIf the price is going up we buy, this is referred to as going long Therefore long is just another name for buy. When the market trend is going up it is referred to as a bullish, this is when a buy order is placed. A bullish trend is identified by drawing an upwards trend line on a Gold trading chart. The example below shows a long/buy signal.
Buy/Long
Sell/ShortIf the XAUUSD price pair is going down we sell, this is referred to as going short. When the market trend is going down it is referred to as a bearish. The example below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downwards trend-line on a chart. The example below shows a short/sell signal.
Gold Trading ChartsA XAUUSD chart provides a visual representation of exchange rates (plotted on the y-axis) against time (plotted on the x-axis) for a given currency pair in our example - XAUUSD. The movement of prices is plotted on these charts. The chart can be plotted as candlestick charts like the one below or as line charts or bar charts.
Gold Chart
The three common types of charts used in XAUUSD Market are:
- Candlestick Charts
- Line charts
- Bar charts
These 3 types are covered in the lesson Gold Chart Types.
Putting Buy Long and Sell Short on MetaTrader 4 Software
XAUUSD ++TradeTrading PlatformThis is the software that is provided by an online broker to help traders set their transactions in the online Gold trading market. Once you download & install this software on your computer you can then begin to trade in the XAUUSD Market and also the FX market. All transactions are executed through this trading platform. If you as a trader want to learn a trading platform, MetaTrader 4 is a good platform to start with.
To set these orders - buy and sell orders - open MT4, open a "chart ", right click on the "chart ", choose "New Order ", then select the order either sell or buy as illustrated below. (Short Cut Keys - Press F9)
