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