How to Trade a XAUUSD Up xauusd trend Reversal

How to Trade Upward XAUUSD Trend Reversal: How to Identify a Upward XAUUSD Trend Reversal XAUUSD Signal

Up Gold trend XAUUSD Reversal

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

How to Trade an Up xauusd trend Reversal? - Strategy for Trading a Upward XAUUSD Trend Reversal

Upward Gold Trend Reversal Trading Strategy

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

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

When this happens xauusd traders will close the open xauusd buy orders which they had bought. This is known as taking profit.

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 open sell gold trades once the up trend line is broken - gold trading reversal signal.

NB: Sometimes when price breaks its xauusd upward 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 up xauusd trend reverses.

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

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

Another tip is to wait for the up trend line to be broken & for the xauusd market to close below it so as to confirm this upward trend reversal signal.

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

Therefore, when trading this xauusd up trend reversal setup it is best to wait until the gold trading price break out has been confirmed by gold trading price closing below the trend line.

• Upwards Market XAUUSD Trend Direction Reversal - this xauusd trend reversal 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.