Gold Trading Long and Short & Trading Charts

In XAUUSD, there are two types of trades, these are:

• Long (buy) - long is if the price trend is buy/bullish.
• Short (sell) - short is if the trend is sell/bearish.

Buying/Long and Selling/shortBoth terms, refer to things we do when open a trade position.

Buying Long = term to use when buying and when opening a trade position.

Selling short = term to use when selling and when opening a trade position.

Long - Long is another term used to refer to buying, If a trader goes long it means that he buys the Gold pair that's heading in an upwards trend. When the price is moving in an upward trend the market trend is referred to as bullish.

Short - Short is a term used to refer to selling of Gold pair that's going in a downwards trend. When the price is going downward then it is known as a bearish trend.

Basically the term, "selling short" can be refer to selling XAUUSD in the online Gold trading markets. Selling short is used to transact a financial instrument (for example XAUUSD) that is predicted to depreciate in value compared to another, when this financial instrument is sold then it is the same as not holding value in this instrument & holding the same value in the other currency - in our example selling XAUUSD & holding the value in the currency USD.

Buy/LongIf the price is going up we buy, this is referred to as going long Therefore long is just another name for buy. When the price trend is going up it's referred to as a bullish, this is when a buy order is placed. A bullish trend is identified by plotting an upward trend-line on a Gold trading chart. The example below illustrates a long/buy signal.

Buy/Long

Sell/ShortIf the Gold price pair is going down we sell, this is known as as going short. When the price trend is going down it is referred to as a bearish. The example below illustrates a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward trend line on a chart. The example below shows short/sell trade signal.

XAUUSD Trading ChartsA Gold chart provides a visual representation of exchange rates (drawn on the y-axis) against time (plotted on the x-axis) for a given forex pair in our example - Gold. The movement of prices is plotted on these trading charts. The chart can be drawn as candle charts like the one below or as line charts or bar charts.

XAUUSD Chart

The three common types of charts used in XAUUSD Market are:

• Candlestick Charts
• Line charts
• Bar charts

These 3 types are covered in the lesson XAUUSD Chart Types.

Putting Buy Long and Sell Short on MetaTrader 4 Platform

Gold Trade SoftwareThis is the trading platform that is provided by an online broker to help traders place their transactions in the online Gold trading market. Once you download & install this software on your computer you then can begin to trade in the Gold Trading Market and also the FX market. All transactions are executed through this trading platform. If you as the trader want to learn a trading platform, MetaTrader 4 is a good platform to start with.

To set these orders - buy and sell orders - open MT4, open a "chart ", rightclick +oon the "chart ", select "New Order ", then choose the trade order either buy or sell as shown below. (Short-cut Keys - Press F9)

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