XAUUSD Indicators for Setting Stop losses in XAUUSD
Some xauusd indicators are used for setting stop losses taking away the need for gold traders to perform complex calculations on where to place these stop loss gold trade orders.
A xauusd trading systems trader can also set a stop-loss order according to these indicators. Some xauusd technical indicators use mathematical equations to calculate where the order stop loss order should be set so as to provide an optimal exit. These xauusd indicators can be used as the basis for setting stop loss orders. These xauusd indicators follow gold price action of a xauusd instrument closely and define the boundaries which the gold prices should move along in. When the gold price moves outside these boundaries it is therefore best to close the open gold trades because gold price stops moving in that particular direction.
Some of the Technical xauusd indicators that can be used to set stop loss orders are:
Parabolic SAR Technical Indicator
Parabolic SAR is like an Automatic Stop Loss XAUUSD Order & Take Profit XAUUSD Order Indicator used to set a trailing gold price stop loss
Parabolic SAR provides excellent exit points.
In an upwards xauusd trend, you should close long trades when the price falls below the Parabolic SAR technical indicator
In a downward xauusd trend, you should close short trades when the price rises above the Parabolic SAR.
If you are long then the gold price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the gold price is moving. The amount the Parabolic SAR indicator moves up depends on amount that gold prices moves.
Parabolic SAR - Gold Indicator - Automatic Stop Loss XAUUSD Order & Take Profit XAUUSD Order Technical Indicator
Picture of parabolic SAR & how it is used
Bollinger Bands Technical Indicator
Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation trading indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands indicator consist of 3 bands designed to encompass the majority of a gold price action. The middle band is a basis for the intermediate term xauusd trend, typically it is a 20 period simple moving average, which also serves as a base for the upper band as well as the lower band. Upper band's distance and lower band's distance from the middle band is usually determined by volatility.
Since these Bollinger bands are used to encompass the gold price action, the bollinger bands can be used by traders to set stop loss orders just outside the areas of the bands.
Bollinger Bands Setting Stop Loss XAUUSD Order Level - Bollinger Bands XAUUSD Technical indicator
Fibonacci Retracement Levels Indicator
Fibonacci retracement levels provide areas of support and resistance, these can be used to set stop-loss levels.
Fibonacci Retracement level 61.80% is the most commonly used level for setting stoplosses. A stoploss order should be set just below 61.8% fib retracement level
The 61.80% Fibo retracement level technical indicator is used to set these orders because its rarely hit.
Fibo Indicator StopLoss XAUUSD Order Setting at 61.8% Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Indicator
Support & Resistance Levels Lines
Support & resistance levels can be used to set stop loss levels where the stop loss orders are set just above or below the support or resistance.
- Buy XAUUSD Trade - Stop Loss XAUUSD Order set a few pips below the support
Buy XAUUSD Trade - Stop Loss XAUUSD Order set few pips below the support
- Sell XAUUSD Trade - Stop Loss XAUUSD Order set a few pips above the resistance
Sell Gold Trade - Stop Loss XAUUSD Order set few pips above the resistance
