XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in XAUUSD
XAUUSD Price action trading is the use of only gold price charts to trade XAUUSD, without the use of technical chart technical indicators. When trading with this gold price action xauusd strategy, candlestick charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 gold price action pattern xauusd strategy explained below.
Traders use this gold price action strategy because this analysis is very objective and allows the one to analyze the gold price moves based on what they see on gold charts market movement analysis alone.
This gold price action strategy is used by many traders: even those that use technical indicators also integrate some form of price action in their gold trading strategy.
The best use of this gold price action strategy is achieved when the price action trading signals generated are combined with line studies so as to provide extra confirmation. These line studies include xauusd trend lines, Fibo retracement, support & resistance levels.
XAUUSD Price Action Trading
XAUUSD Price action strategy uses three chart points to determine the break out direction of gold price. The 1-2-3 gold price action strategy uses a peak and a trough, these chart points forms point 1 & point 2, if market moves above the peak the gold price action signal is long, if it moves below the trough the gold price action trading signal is to short. Break-out of point 1 or point 2 forms the third chart point.
XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in Gold - XAUUSD Price Action Trading
XAUUSD Price Action Trading Strategy
XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in Gold - XAUUSD Price Action Trading
Xauusd traders use gold price action to try & predict where a xauusd trend direction might go. The xauusd market is either trending or ranging.
A trending market moves in a specific direction while a range market moves sideways, normally after hitting a support or resistance zone.
Observing the behavior of gold price action provides this information of whether the xauusd market is trending or ranging or reversing its direction.
As with any other XAUUSD strategy this gold price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the xauusd market is ranging, it is best to determine if the xauusd market is trending or not before you start using this strategy.
