How to Identify a XAUUSD Trend Reversal XAUUSD Signal

XAUUSD Trend Reversal Trading Strategy

After gold trading price has moved in a particular direction for an extended period of time within a xauusd trend it reaches a point where it stops moving within the trend. When this happens we say that the trend-line has been broken & this is interpreted as a xauusd trend reversal signal.

Since the trend-line is point of support or resistance & this point of support or resistance has been broken after a xauusd trendline break - we then expect the gold trading price to move towards the opposite direction and this is interpreted as a xauusd trend reversal signal.

When this happens xauusd traders will close the open xauusd orders which they had bought or sold. This is referred to as taking profit.

Up Gold trend XAUUSD Reversal

When gold trading price breaks out below the upwards trend line (support) xauusd market will then move downwards

Upwards XAUUSD Trend-Line Break - How to Identify a XAUUSD Trend Reversal XAUUSD Signal

This xauusd trend reversal trading signal is considered to be complete with formation of a lower high of the gold trading price. This also provides a trading opportunity to sell once the trend line is broken - gold trading reversal signal.

Down Gold trend XAUUSD Reversal

When gold trading price breaks above downwards line (resistance) the gold trading price will then move up

Downwards XAUUSD Trend Line Break -How to Identify a XAUUSD Trend Reversal XAUUSD Signal

This xauusd trend reversal trading signal is considered to be confirmed with creation of a higher low. This xauusd reversal setup also provides a trading opportunity to open a buy xauusd trade once the trend line is broken - xauusd trend line reversal gold trade signal.

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

To trade this xauusd reversal setup as a trader once you open a new xauusd trade in direction of the market trend reversal the gold price should immediately move in that direction, in a gold price break-out manner. This means that the gold trading prices should immediately move in that direction without much of a resistance.

If on the other hand the gold trading prices do not immediately move in the direction of the gold trading price breakout then it is best to close out the xauusd trade because it means that the xauusd trend is still holding.

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

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

Therefore, when trading this xauusd reversal setup it is best to wait until the gold trading price break out has been confirmed by gold trading price closing above or below the trendline, depending on the direction of the market.

• Upwards Market XAUUSD Trend Direction Reversal - this reversal xauusd signal is confirmed once the gold trading price closes below this upward trend-line, this should be the correct time to open a sell xauusd trade, so as to avoid a xauusd whipsaw.

• Downwards Market XAUUSD Trend Direction Reversal - this reversal xauusd signal is confirmed once the gold price closes above the downward xauusd trend-line, this should be the correct time to open a buy xauusd trade, so as to avoid a xauusd whipsaw.