How Do You Draw XAUUSD Trend Lines Correctly?

XAUUSD How to Draw XAUUSD Trend Lines Correctly - Detailed Tutorial on How to Draw XAUUSD Trend Lines Correctly

Principles of How to Draw XAUUSD Trend Lines Correctly

1. Use gold candle stick charts

2. The points used to draw are along the lows of the gold price bars in a bullish gold market. An upwards bullish xauusd trend is defined by higher highs & higher lows.
3. The points used to draw are along the highs of the gold price bars in a bearish gold market. A downward bearish xauusd trend is defined by lower highs and lower lows.
4. The points used to draw xauusd trend lines are extremes points - the high or the low gold trading price. These extremes are important because a close beyond the extreme tells xauusd traders the xauusd trend of xauusd might be changing. This is an entry or an exit gold trade signal.
5. The more often a xauusd trend line is hit but not broken, the more powerful its xauusd trend signal.

Example 1: How to Draw Upwards XAUUSD Trend Line Correctly

To draw an upward xauusd trend line correctly use two support points in a bullish upward xauusd trend so that to draw the upwards trend line and then extend the trend line as illustrated and shown below. The upward xauusd trendline will show the general direction of gold prices & as long as trading price is above this upwards trend-line then the upward trend will remain intact - bullish upward gold trend.

If gold trading prices move below the upwards trend line which is the support level for the bullish upwards xauusd trend then traders should close all their open gold trades - because this might be a xauusd trend reversal trading signal. In an upwards xauusd trend gold trading price should generally stay above the support area which is marked by the upwards trend line.

How to Draw XAUUSD Trend-Lines Correctly for Upwards XAUUSD Trend

How to Draw Upward XAUUSD Trend-Line Correctly - How to Draw XAUUSD Trend Lines Correctly

Examples 2: How to Draw Downwards XAUUSD Trend Line Correctly

To draw a downwards xauusd trend line correctly use two resistance points in a bearish downward xauusd trend so as to draw the downwards xauusd trend line & then extend the trend line as shown below. The downward xauusd trendline will show the general direction of gold prices & as long as trading price is below this downwards trend line then the downwards xauusd trend will remain intact - bearish downwards gold trend.

If gold trading prices move above the downwards xauusd trend line which is the resistance level for the bearish downwards xauusd trend then traders should close all their open gold trades - because this might be a xauusd trend reversal trading signal. In an downward xauusd trend gold trading price should generally stay below the resistance level which is marked by the downwards trend line.

How to Draw XAUUSD Trend Lines Correctly for Downwards XAUUSD Trend

How to Draw Downward XAUUSD Trend-Line Correctly - How to Draw XAUUSD Trend Lines Correctly