Gold Price Action Strategies
A trader must come up with a system which they follow when trading the market. A trader must have the discipline to s broken then the sentiment of the strategy at all times. That is why it's better to come up with trade strategies that are profitable - profitable systems will be a lot easier to follow and stick to. This is because a trader knows that by following the rules of their system they'll be successful.
A carefully designed strategy that has been back tested and proven to generate profitable results is one of the keys to becoming successful when trading the market. This type of strategy will make it easier for the trader to follow the rules of their strategy because they already know that the strategy is profitable, therefore keeping up the discipline required to continue following the system will be much easier.
Successful xauusd strategies also will include:
1. XAUUSD money management principles
2.XAUUSD Psychology Mindset
These 2 will greatly improve the success of any system.
However, Let us look at price action strategy before expounding on money management and psychology.
Price Action Strategies
Price action is the use of trading price movements to determine when to buy or close trades. Price action will use the study of xauusd chart patterns that form time and time again and these chart patterns can be interpreted in different ways. The trader will use this pattern to determine the likely market direction that the market is likely to take next based on the price chart patterns that have been formed on the charts.
In price action traders may use different methods to generate signals from the chart setups. Some of these methods are:
Candlesticks trading patterns - a trader might use the study of Japanese candle chart formations which is the study of various candlestick formations along with how to interpret these candlesticks formations. A candlestick pattern may consist of only one candlestick or a multiple of xauusd candlesticks. To learn and know more about candlesticks patterns traders can find these candlestick chart patterns tutorials on the learn tutorials of this web site under the analysis concepts.
Support & Resistance Levels - traders can use price action and combine this price action with support & resistance levels. A trader will wait for price to hit the support level to open a buy trade and wait for the price to touch the resistance level to open a sell xauusd trade. The concept of trading major support and resistance levels is a very popular method in xauusd. For example in a upward trend a trader may wait & only open buy traders when prices hit support levels - at the same time a trader will take profit once the price hits a resistance level and then wait for another pullback to open a buy trading again.
To learn & know more about support and resistance levels traders can find these tutorials on the learn tutorials of this web site under the analysis concepts.
Trend lines - traders also can use trend lines to determine price action direction or the trend. For an upward trend line that shows the market is trending up a trader will open buy trades once trading price touches the upward trend-line. For a downward trend that shows the general market direction is downwards a trader will open sell trade transactions once the price touches the downward trend line.
To learn & know more about how to trade with trend lines traders can find these tutorials on the learn tutorials of this web site under the analysis concepts.
Gold Chart Setups - xauusd chart patterns is different from candlestick patterns, these are two different methods of technical analysis, and traders should learn more about patterns in the tutorials section of this website under the analysis concepts.
Chart patterns is the study of a formation of several candlesticks over a period of time. These patterns are consolidation patterns, xauusd trend continuation patterns and market reversal xauusd patterns. Traders can use the study of these patterns to determine the next likely market move.
XAUUSD Strategy Tips
Once a trader has come up with their strategy, they should also try to include the following to make their strategy more successful.
1.XAUUSD Equity Management Tutorials
2.Gold Psychology
XAUUSD Equity Management Guide-lines
Xauusd equity management rules should be part of your strategy - these rules will help you as a trader to manage risk. This means that you will use 2 rules of xauusd equity management - these are risk:reward ratio & drawdown reducing method when placing your trades to determine lot size that you will open in the market. The most popular equity management rule use in xauusd & the one that you should also add to your plan is the rule which says a trader should never risk more than 2 % of account balance on any one single trade.
To learn & know more about these two xauusd equity management rules, traders should read the equity management tutorial that's on the learn tutorials section of this website under the key concepts courses.
Gold Psychology Mindset
In order for one to become successful when trading the market a trader has to learn about psychology. The psychology or mindset that's required to become successful in xauusd is one that avoids the emotions of fear & greed while trading the market & is a mindset of total discipline that a trader will follow all their rules and their strategy and only trade with signals which are generated by their strategy. With discipline a trader won't trade unless their strategy gives a signal. A trader will have the mindset of only following their system 100 % all the time without second guessing the system. A disciplined trader also will not open trade transactions in market just because the market has started to move up or down-ward, instead a trader will wait for a signal to be generated by their strategy.
In order to learn more about psychology and how to manage emotions while trading the online market a trader can read the psychology lessons from the learn tutorials section of this website under the key concepts tutorials.
