Technical Indicators for Setting Stop losses in Gold Trading

Some chart trading indicators are used for setting stop losses taking away the need for XAUUSD traders to perform complex calculations on where to place these stop losses.

A XAUUSD trading systems trader can also place a stop loss according to these chart indicators. Some indicators use mathematical calculations to calculate where the stop loss order should be set so as to provide an optimal exit. These chart indicators can be used as the basis for setting stop losses when it comes to XAUUSD trading. These chart indicators follow price action of Gold price chart closely and define the boundaries which the XAUUSD price should move along in. When the Gold moves outside these boundaries it is therefore best to close the open XAUUSD trades as price stops moving in that particular direction.

Some of the Technical indicators that can be used to set stop losses are:

Parabolic SAR Indicator

Parabolic SAR is used to set a trailing price stop loss when trading XAUUSD metal online

The Parabolic SAR provides excellent exit points for setting stops.

In an upward trend, you should close long positions when the price falls below the parabolic SAR
In a downward trend, you should close short positions when the price rises above the parabolic SAR

If you're in a long position then the price should be above the parabolic SAR, the parabolic SAR indicator will move up each day, regardless of the direction in which the Gold price is moving. The amount that the parabolic SAR moves up depends on the amount that XAUUSD prices moves.

Gold Trading Technical Indicators Used for Setting Stop Losses in XAUUSD Trading Chart

Parabolic SAR Indicator - Technical Chart Indicator

Parabolic SAR indicator & how it is used for setting stop loss orders

Bollinger ##BandsBand

Bollinger Bands indicator uses standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the Bollinger bands are self-adjusting meaning that they widen during periods of higher volatility & contract during periods of lower volatility.

Bollinger Bands indicator consists of 3 bands that are designed to encompass the majority of a trading instruments price action. The middle band is a basis for the intermediate-term price trend: typically it is a 20-period simple moving average, which also serves as the base for the upper & lower Bollinger bands. The distance of the upper band the lower band from the middle band is determined by volatility of the price movement.Since these Bollinger bands are used to encompass the XAUUSD trading instrument price action, the bands can be used to set stop losses just outside the area of these bands.

XAUUSD Technical Indicators for Setting XAUUSD Stop Loss Orders - XAUUSD Trading Stop Loss Orders Setting

Bollinger Band Indicators Setting Stop Loss Level in Gold Price Chart

Fibonacci Retracement Levels Indicator

Fibonacci retracement levels also provide areas of support and resistance, these areas can be used to set stop loss levels when trading XAUUSD. Fibonacci Retracement level 61.8 % is the most commonly used level for setting stop losses. A stop loss should be set just below Fib retracement level 61.8 %.

The 61.8 % Fibonacci retracement level is used to set these stop loss orders since this retracement level is rarely hit.

How to Set XAUUSD Stop Loss Orders in XAUUSD Trading using Gold Trading Technical Indicators

Fibonacci Retracement Levels Chart Indicator Stop Loss Setting at 61.8 Percent Retracement Level

Fibonacci retracement level 61.8% used to set stop orders in XAUUSD trading.

Support and Resistance Levels Lines

Support & resistance levels is another technical chart indicator that can be used to set stop loss levels where the stop loss orders are set just above or below the support or resistance levels.