XAGUSD Trend Line Break

After xagusd price has moved in a certain direction for an extended period of time within a channel it reaches a point where it stops moving within the channel. When this happens we say that the silver trend line has been broken.

Since the line is point of support or resistance then we expect the xagusd trading market to move toward the opposite direction. When this happens traders will close the silver orders which they had bought or sold. This is referred to as taking profit.

Up xagusd trading trend Reversal

When xagusd trading price breaks-out upwards line (support) the xagusd trading market will then move down

This signal is considered to be complete with the creation of lower high or a lower low. This also provides a trading opportunity to go short once it's broken.

Down xagusd trading trend Reversal

When xagusd trading price breaks-out downward line (resistance) the xagusd trading market will then move up

Downward Channel break

This trading signal is considered to be complete with creation of a higher low or higher high. This also provides a trading opportunity to go long once it's broken.

NB: Sometimes when xagusd trading price breaks its silver trend it might first of all consolidate before moving in the opposite direction. Either way it is always good to take profit when xagusd trading market direction reverses.

To trade this xagusd trading setup as a trader once you open a new trade in the direction of the silver trend reversal the xagusd trading price should immediately move in that direction, in a xagusd price breakout manner. This means that the xagusd market should immediately move in that direction without much of a resistance.

If on the other hand the xagusd trading market does not immediately move in the direction of the xagusd trading price breakout then it is best to close out the trade because it means that the silver trend is still holding.

Another tip is to wait for the silver trend line to be broken and for the xagusd trading market to close above or below it so as to confirm this xagusd trade signal.

What happens is that most traders open trades waiting for a reversal even before the silver trend is broken, only for the xagusd trading price to touch this line and for the current market direction to hold and silver to continue with the current market direction.

Therefore, when trading this xagusd trading set up it is better to wait until breakout has been confirmed by xagusd trading price closing above or below the silver trendline, depending on the direction of the market.

• Upward Market Direction Reversal - this silver signal is confirmed once the xagusd trading market closes below this upward line, this should be the correct time to open a sell short trade, so as to avoid a silver trading whipsaw.

• Downward Market Direction Reversal - this silver signal is confirmed once the xagusd trading market closes above the downward line, this should be the correct time to open a buy long trade, so as to avoid a silver trading whipsaw.

Combining With Double Tops or Double Bottoms Silver Trading Chart Patterns

A good trade setup to combine this xagusd trading setup with is the double tops and double bottoms xagusd chart patterns. Read Double Top and Double Bottom Chart patterns Tutorial.

This setup should already have formed before the silver trend break signal. Because these double tops and double bottoms are also reversal xagusd trading signals, then combining these 2 setups will give the trader a good probability of avoiding a silver trading whipsaw.

In the above chart screenshots these silver trading setups can be confirmed to have formed even before the reversal xagusd trade signal popped up.

First Example of Upwards Direction Reversal - the Double tops pattern had already formed before the silver trend break trading signal appeared on the xagusd trading chart.

Second Examples of Downwards Direction Reversal - the Double bottoms xagusd trading pattern had already formed before the silver trend break trading signal appeared on the xagusd trading chart.

Double Top or Double Bottoms Combined With other Reversal Trading Signals