Gold Trading Long and Short & Trading Charts
In XAUUSD, there are two types of trades, these are:
- Long (buy) - long is if the market 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.
Buying Long = term to use when buying and when opening a trade.
Selling short = term to use when selling and when opening a trade.
Long - Long is another term used to refer to buying, If a trader goes long it means that he buys the Gold pair that is 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 is going in a downwards trend. When the price is going downward then it is referred to 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 market trend is going up it is 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 shows 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 market trend is going down it is referred to as a bearish. The example below shows 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 a short/sell signal.
XAUUSD Trading ChartsA Gold chart provides a visual representation of exchange rates (plotted 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 plotted 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 ##TradeSoftwareThis is the software 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 can then begin to trade in the Gold Trading Market and also the FX market. All transactions are executed through this trading platform. If you 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 ", right click +oon the "chart ", select "New Order ", then choose the order either sell or buy as shown below. (Short Cut Keys - Press F9)
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