Definition of a Channel in XAUUSD
A channel can be defined as a trading range for a xauusd instrument within which the gold trading price of a xauusd moves within in what is known as a gold trend.
The channel can be an upwards xauusd channel or a downward gold trading channel.
Traders use xauusd channels to analyze gold trading price movements and determine what trade to take depending on the signal generated by the technical analysis of the gold trading channel.
What is Channel in Gold?
An upwards xauusd channel is plotted by drawing a line that is parallel to the upward trend-line & then adjusted to touch the tops boundary of the gold price movement. This then forms a channel and as long as the trading price stays between these two channels the bullish market xauusd trend movement will continue moving upwards - bullish gold trend.
Upwards Channel - What is a Channel in XAUUSD? - What is a Channel in Trading XAUUSD? - MT4 XAUUSD Channel Indicator
What is Channel in XAUUSD? - What is a Channel in Trading Gold?
Analysis of Upwards Channel - This channel in xauusd is used by traders to show levels where it best to take profits. Traders will take some profit once the gold trading price touches the upper channel & wait for another retracement before opening a buy gold trading again.
What is Channel in XAUUSD?
A downward xauusd channel is plotted by drawing a line that is parallel to the downwards xauusd trendline and then adjusting it to touch the bottom boundary of the gold trading price movement. This then forms a xauusd channel & as long as the trading price stays between these two channels the general market xauusd trend direction is intact the xauusd market direction will continue being bearish - bearish gold trend.
How to Draw Downward Channel - What is a Channel in XAUUSD? - MT4 XAUUSD Channel Indicator
What is Channel in XAUUSD? - What is a Channel in Trading Gold?
Analysis of Downwards Channel - The downward xauusd channel in xauusd is used by traders to show levels where it best to take profits. Traders will take some profit once the gold trading price touches the lower channel or the lower channel and wait for another retracement before opening a sell gold trading again.
