What's XAUUSD Price Action in XAUUSD?
Gold price action is the analysis of gold price movements that are drawn on gold charts.
Gold price action analysis uses line studies or gold price action patterns to try and determine the xauusd trend of the price chart.
Gold price action signals can also be combined with xauusd systems that can be used to determine which direction of trading to take.
Pin Bar Gold Price Action XAUUSD Strategy
A pin bar is a xauusd trend reversal signal on a gold price chart which shows an obvious change in xauusd market sentiment during that period.
This pin bar gold price action set up has a long tail with the closing gold price near the open. The pin bar pattern looks like a pin thus the name Pin Bar - occurs after an extended trend move up or down.
This xauusd trend reversal is confirmed after market closes below the candlestick that precedes this gold price action pattern. Below the reversal setup is confirmed after the xauusd market prices closes below the blue candle that preceded this pin-bar candle.
Gold Price Action 1-2-3 Method in XAUUSD
XAUUSD Price action trading strategy is use of only gold price charts to trade XAUUSD, without the use of technical chart technical indicators. When trading with this technique, candle charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 pattern that either develops as one gold price action pattern or series of gold price action setups.
Traders use this gold price action xauusd strategy because this analysis is very objective and allows the one to analyze the gold price market moves based on what they see on the gold charts and market movement analysis alone.
This strategy is used by many traders: even those that use indicators also integrate some form of price action in their trading strategy.
Gold Price Action 1-2-3 Breakout XAUUSD Strategy
This gold price action strategy uses 3 chart points to determine the break-out direction of a xauusd. The 1-2-3 method uses a peak and a trough, these points forms point 1 and point 2, if market moves above the peak the trade signal is long, if it moves below the trough the trade signal is to short. The break out of point 1 or point 2 forms the third point.
XAUUSD Price Action 1-2-3 Breakout XAUUSD Strategy Example
Combining XAUUSD Price Action Strategy with other Indicators
Good xauusd indicators to combine gold price action trading patterns with are:
- RSI
- Moving Average Technical Indicator
Traders should use these two xauusd indicators to confirm if the direction of the gold price action breakout is in line with the xauusd trend direction shown by these two xauusd chart indicators. If the direction is also the same as the direction of these indicators then traders can open a trade in the direction of the xauusd signal. If not traders should not open a trade as there is more likely a chance that this xauusd signal may be a xauusd whipsaw.
Just like any other chart indicator in XAUUSD, gold price action trading strategy also has whipsaws and there is a requirement to use this strategy as a combination with other xauusd signals as opposed to just using this gold price action trading strategy alone.
Combining XAUUSD Price Action Trading Strategy other Technical Indicators - RSI & Moving Averages XAUUSD Price Action Trading Strategy
