What's a XAUUSD Trend Reversal?

Definition and Meaning of a XAUUSD Trend Reversal and How to Trade a XAUUSD Trend Reversal

In xauusd the trendline break signal is used to signify a xauusd market reversal xauusd signal. When a xauusd trend line is broken then it means that the momentum of the current xauusd trend is reducing & the current xauusd trend might reverse and start moving in the opposite direction or form a consolidation chart pattern before it reverses.

Gold Market Reversal XAUUSD Signal

After gold price has moved in a particular direction for an extended period of time within a xauusd trend it reaches a point where it stops moving within the trend. When this happens we say that the trend line has been broken.

Since the trendline is the point of support or resistance then we expect the xauusd market to move toward the opposite direction. When this happens xauusd traders will close the open xauusd trade which they had bought or sold. This is known as taking profit.

Up Gold trend XAUUSD Reversal

When gold price breaks-out upwards xauusd trend line (support) the xauusd market will then move down or form a consolidation pattern before moving downwards.

What is Upwards XAUUSD Trend Reversal in XAUUSD? - What's Upward XAUUSD Trend Reversal?

This upwards xauusd trend xauusd trendline break reversal signal is considered to be confirmed with reversal xauusd pattern of lower high is formed on the gold price chart. This also provides a trading opportunity to go short once the trendline broken.

Gold Market Reversal Trading Signal

When gold price breaks-out downward xauusd trend line (resistance) xauusd market will then move upwards or form a consolidation pattern before moving upward.

What's Downward XAUUSD Trend Reversal in XAUUSD? - What's XAUUSD downward XAUUSD Trend Reversal?

This downwards xauusd trend-line break reversal signal is considered to be complete with the pattern of a higher low is formed. This also provides a trading opportunity to go long once the downwards xauusd trend-line is broken.

NB: Sometimes when price breaks its xauusd trend it might first of all consolidate before moving in the opposite direction. Either way it is always good to take profit when xauusd market xauusd trend direction reverses.

To trade this xauusd trend reversal setup as a trader once you open a new trade in direction of the market trend reversal the gold price should immediately move in that direction, in a gold price break-out manner. This means that the xauusd market should immediately move in that direction without much of a resistance.

If on the other hand the xauusd market does not immediately move in the direction of the gold price breakout then it is best to close out the trade because it means that the current xauusd trend is still holding.

Another tip is to wait for the trend line to be broken & for the xauusd market to close above or below the trend line so as to confirm this xauusd trend reversal signal.

What happens is that most traders open trades waiting for a reversal xauusd signal even before the current xauusd trend is broken, only for the gold price to touch this xauusd trend line & for the current market xauusd trend direction to hold and the xauusd to continue with the current market direction.

Therefore, when trading this xauusd trend reversal setup it is best to wait until the gold price break-out has been confirmed by gold price closing above or below the trend-line, depending on the direction of the market.

• Upward Gold Market Direction Reversal - xauusd trend line reversal xauusd signal is confirmed once the xauusd market closes below this upward trend-line, this should be the correct time to open a sell xauusd trade, so as to avoid a xauusd whipsaw.

• Downward Gold Market Direction Reversal - xauusd trend line reversal xauusd signal is confirmed once the xauusd market closes above the downward xauusd trend-line, this should be the correct time to open a buy xauusd trade, so as to avoid a xauusd whipsaw.