Indicators for Setting Stop losses in XAU/USD Trading

Some chart indicators are used for setting stop loss orders taking away the need for Gold traders to perform complex calculations on where to place these stoploss orders.

A Gold trading systems trader also can set a stoploss order according to these chart trading indicators. Some indicators use mathematical calculations to calculate where the stoploss order should be placed so as to provide an optimal exit. These chart indicators can be used as the basis for setting stop losses when it comes to XAU/USD trading. These chart indicators follow price action of Gold price chart closely and define the boundaries which the Gold price should move along in. When the XAUUSD moves outside these boundaries it's thence best to close the open Gold trades as price stops heading in that particular direction.

Some of the Indicators that can be used to set stop losses are:

Parabolic SAR Indicator

Parabolic SAR is used to set a trailing price stop loss when trading Gold metal online

Parabolic SAR technical indicator provides excellent exit points for setting stops.

In an upwards trend, you should close long positions when price falls below the parabolic SAR
In a downwards trend, you should close short positions when the price rises above the parabolic SAR

If you're in a long position then the market price should be above the parabolic SAR, the parabolic SAR indicator will move up every day, regardless of direction in which the Gold price is heading. The amount that the parabolic SAR moves up depends on the amount that XAUUSD prices moves.

Gold Indicators for Setting StopLoss Orders in Gold Trading

Parabolic SAR Trading Indicator - Technical Chart Indicator

Parabolic SAR indicator & how it is used for setting stop loss orders

Bollinger Bands Indicator

Bollinger Bands indicator uses standard deviation as an estimate of market volatility. Since standard deviation is an estimate of the market volatility, the Bollinger band are self-adjusting meaning that they widen during periods of higher volatility and contract during periods of lower market volatility.

Bollinger Bands indicator consists of three bands which are designed to encompass the majority of a trading instruments price action. The middle band is a basis for the intermediate term market trend: mostly it's a 20-period simple moving average, which also serves as the base for the upper and lower Bollingers. The distance of the upper band the lower band from the middle band is determined by volatility of the price movement. Since these Bollinger band are used to encompass the XAUUSD trading instrument price action, the bands can be used to set stop losses just outside the area of these bands.

Gold Trading Indicators for Setting StopLoss Orders in Gold Trading

Bollinger Bands Indicators Setting Stop Loss Level in Gold Price Chart

Fib Retracement Levels Indicator

Fib retracement levels also provide areas of support and resistance, these areas can be used to set stop loss levels when trading Gold. Fibonacci Retracement level 61.8 percent is the most commonly used level for setting stop loss orders. A stop loss order should be placed just below Fib retracement level 61.80%.

The 61.8 % Fib retracement level is used to set these stop loss order orders since this retracement level is rarely hit.

Indicators for Setting StopLoss Orders in Gold Trading - Setting XAUUSD Stop Loss Using Gold Trading Indicators

Fib Retracement Levels Chart Indicator Stop Loss Setting at 61.8 Percent Retracement Level

Fib retracement level 61.8% used to set stop orders in XAUUSD trading.

Support & Resistance Levels Lines

Support and resistance areas is another technical chart indicator that can be used to set stop loss order levels where the stop losses are set just above or below the support or resistance levels.