How to Trade a XAUUSD Down xauusd trend Reversal
How to Trade Downwards XAUUSD Trend Reversal: How to Identify a Downwards XAUUSD Trend Reversal XAUUSD Signal
Down XAUUSD trend Gold Reversal
When gold price breaks-out above the downwards xauusd trend line (resistance) gold trading price will then move up
How to Trade Downwards XAUUSD Trend Reversal: How to Identify a Downwards XAUUSD Trend Reversal XAUUSD Signal
XAUUSD Down Trend Reversal Trading Strategy
After gold price has moved in a down xauusd trend direction for an extended period of time within a down xauusd trend it reaches a point where it stops moving within the downward trend. When this happens we say that the down xauusd trend line has been broken & this is interpreted as a xauusd down trend reversal signal.
Since the downward xauusd trend line is the point of resistance and this point of resistance has been broken after a xauusd trendline break - then we expect the gold price to move towards the opposite direction upwards and this is interpreted as a down xauusd trend reversal signal.
When this happens xauusd traders will close the open xauusd sell orders which they had sold. This is referred to as taking profit.
This xauusd down trend reversal signal is considered to be confirmed with formation of higher low. This xauusd down trend reversal setup also provides a trading opportunity to open a buy xauusd trade once the down trend line is broken - xauusd down trend line reversal gold trading signal.
NB: Sometimes when price breaks its xauusd down 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 down trend 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 upwards in that direction, in a gold price break-out manner. This means that the gold prices should immediately move upward in that direction of the reversal xauusd signal without much of a resistance.
If on the other hand the gold prices do not immediately move in the upwards direction of the gold price breakout then it is best to close out the buy xauusd trade because it means that the down trend is still holding.
Another tip is to wait for the downward trend line to be broken and for the xauusd market to close above it so as to confirm this down xauusd trend reversal signal.
What happens is that most traders open trades waiting for a xauusd reversal even before the down trend is broken, only for the gold price to touch this downwards xauusd trend line & for the current market down xauusd trend direction to hold and the xauusd to continue with the current market down gold trend.
Therefore, when trading this xauusd down trend reversal setup it is best to wait until the gold price break-out has been confirmed by gold price closing above the trend line.
- Downward Market XAUUSD Trend Direction Reversal - this down xauusd trend reversal signal is confirmed once the gold price closes above the downwards xauusd trend-line, this should be the correct time to open a buy xauusd trade, so as to avoid a xauusd whipsaw.
