What's a XAUUSD Trend?
A xauusd trend is the tendency of gold prices to move in one specific direction for certain period of time.
Gold trading prices generally move in trends, the xauusd trend direction can either be upwards or downward.
XAUUSD Traders use xauusd tools such as xauusd trend lines to identify xauusd trends.
XAUUSD Trend lines help to define entry and exit points for trades that are open by traders.
The trend line define the xauusd market xauusd trend & as long as trading prices continue to move within the trend line the traders will keep their trade open. Traders will only close their open xauusd trade once the gold trading prices stop moving within the trendlines.
The two types of xauusd trends are:
Upward XAUUSD Trend - Drawn using an upwards xauusd trend line
Downward XAUUSD Trend - Drawn using a downwards xauusd trend line
Upward XAUUSD Trend
Course: How to Draw & Trade Upward XAUUSD Trend
Upwards XAUUSD Trend - Drawn using an upwards xauusd trend-line
Downwards Gold Trend
Course: How to Draw & Trade Downwards XAUUSD Trend
Downwards XAUUSD Trend - Drawn using a downwards xauusd trend-line
The MT4 platform provides charting tools for plotting trends on gold charts. To draw gold trend on gold charts traders can use trendline drawing tool provided in MT4 software that is shown below.
Definition and Meaning of a XAUUSD Trend & How to Trade a XAUUSD Trend
To draw a xauusd trend-line on MT4 platform and choose point A where you want to start drawing and then point B where you want the it to touch. You can also right-click in trend-line & on the properties option select option to extend ray by checking the 'ray check box', if you do not want to extend it, then uncheck this option in your xauusd trading platform.
The xauusd trend is your friend. Is a popular saying among xauusd traders because you should never trade against it. This is the most reliable xauusd method to trade XAUUSD because once gold trading prices begin to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw & Define XAUUSD Trend
Use gold trading candlestick charts
- The points used to draw the xauusd trend are along the lows of the gold price bars in a rising market. An upwards bullish xauusd trend move is defined by higher highs & higher lows.
- The points used to draw are along the highs of the gold price bars in a falling downward market. A downwards bearish xauusd trend move is defined by lower highs and lower lows.
- The points used to draw the trend lines are extremes points - the high or the low gold trading price. These gold trading price extremes are important because a close beyond the extreme tells xauusd traders that the xauusd trend of xauusd might be changing. This is an entry or an exit gold trade signal.
- The more often a xauusd trend is touched by gold price but it's not broken, then the more powerful the xauusd trend signal.
