Technical Indicators for Setting Stop-loss in Gold Trading

Some chart indicators are used for setting stoploss orders taking away the need for XAUUSD traders to complex calculations on where to place and set these stop losses.

A XAUUSDtrade systems trader also can place a stop loss in accordance to these chart technical indicators. Some indicators use mathematical calculations to calculate where the stop loss should be set and placed 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 Gold price should move along in. When the Gold moves outside these boundaries it is henceforth best to close-out the open XAU USD trade positions as price stops heading in that particular direction.

Some of the Trading 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 Gold metal online

Parabolic SAR provides excellent points for exit setting and placing stoplosses.

In an upward trend, you should close long positions when the price falls below parabolic SAR
In a downward trend, you should close-out 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 going. The amount that the parabolic SAR moves up depends on the amount that XAUUSD Gold prices moves.

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

Parabolic SAR Indicator - Technical Chart Technical Indicator

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

Bollinger Band

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

Bollinger Bands indicator consists of 3 bands which are designed to enclose/encompass the majority of a financial instruments price action. The middle band is a basis for the intermediate term price trend: mostly it's a 20-period simple MA 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 instrument price action, the bands can be used to set stop loss orders just outside the area of these bands.

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

Bollinger Band Indicators Setting StopLoss Level in Gold Price Chart

Fib Retracement Levels Indicator

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

The 61.8 % Fib retracement level is used to set these stoploss order orders since this retracement level is rarely hit.

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

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

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

Support & Resistance Areas Lines

Support & resistance zones is another trading chart indicator which can be used to set stoploss order levels where the stop loss orders are set just above or below the support/resistance zones.