Moving Average Support and Resistance Levels

Moving Averages can be used as points of support & resistance on gold charts.

When gold price reaches the moving average, the Moving Average level can act as a point of support or resistance for the gold price.

Buy XAUUSD Signal

If gold price is on an upward xauusd trend and starts to retrace, then most traders might wait to buy at a better gold price when the price hits a support level. Traders will sometimes use the Moving Average to determine the support level.

A buy signal is generated when price hits the Moving Average, turns and starts moving in the upward trend direction. The xauusd signal is confirmed when price closes above the MA. Because many traders use the moving averages to generate xauusd signals, gold price will normally react to these levels.

A stoploss should be set just below the Moving Average xauusd Indicator. Ideally it should be set a few pips below the previous low.

Buy XAUUSD Signal - How to Trade XAUUSD Trading with Moving Average Strategy

Sell Gold Signal

If the gold price is on a downward xauusd trend and starts to retrace, then most traders might wait to sell at a better gold price when the price hits a resistance level. Traders will sometimes use the Moving Average to determine the resistance level.

A sell signal is generated when price hits the Moving Average, turns and starts moving in the downward xauusd trend direction. The xauusd signal is confirmed when price closes below the MA. Because many traders use the moving averages to generate xauusd signals, gold price will normally react to these levels.

A stoploss should be set just above the xauusd moving average indicator. Ideally it should be set a few pips above the previous high.

Sell XAUUSD Signal - How to Trade XAUUSD Trading with Moving Average Strategy

Resistance Level turns Support Level

In Gold - When a resistance level is broken it turns into support and vice versa.

This happens when the fundamentals of a xauusd trend change and consequently the direction of a xauusd. Direction change is reflected by the moving average xauusd technical indicator, the direction is confirmed when the resistance zone turns into support level or vice versa (when support area turns into resistance level)

Resistance Level turns Support Level - Moving Average XAUUSD Strategy Example