20 Pips per Day Compounding Strategy
The 10 or 20 pips gold price range moving average indicator strategy is used with the 15 minutes and 1 H XAUUSD Charts. On this xauusd chart timeframes we use the 100 and 200 simple moving average indicator.
Both the 1 Hour and 15 min chart time frames will use the 100 & 200 simple moving average indicator (SMA Indicator) to determine the direction of the XAUUSD trend.
The 1 Hour xauusd chart timeframe checks the long term direction of the XAUUSD trend, upwards trend or downwards trend, depending on the direction of the moving averages. All trades taken should be in this direction.
We then use the 15 minute gold price xauusd chart to find the optimal point to enter trades. Trades are opened only when the price is within 10 or 20 pips range of the 200 simple moving average indicator, if gold price is not within this pip range trades are not opened.
XAUUSD Uptrend/Bullish Market
To generate XAUUSD Trading buy signals using the 10 or 20 pips moving average indicator xauusd strategy, we shall use the 1 hour and 15 minute chart time frame.
On the 1 hour xauusd chart timeframe the gold price pair should be above both the 100 and 200 simple moving average indicator. We then move to a lower xauusd chart time frame, the 15 minute chart timeframe to generate a gold trade signal.
On 15 minute chart timeframe, when price reaches the 10 or 20 pips range above the 200 simple moving average indicator, we open a buy xauusd trade and place a stoploss 20 pips below the 200 simple moving average indicator. Stop loss can be adjusted to the amount of Pips which are suitable for your method but to avoid being stopped out by normal XAUUSD Trading volatility its best to use 20 pips stop loss.
A buy xauusd trade can also be opened when price touches the 100 period simple moving average trading technical indicator, provided it is not set very far from the 200 SMA. Normally the 100 period simple moving average technical indicator will be within the 10 or 20 pips range of the 200 period simple moving average technical indicator.
100 and 200 Simple Moving Average Gold Indicator Buy Signal
XAUUSD Downtrend/Bearish Market
To generate XAUUSD Trading sell signals using the 10 or 20 pips moving average indicator xauusd strategy, we shall also use the 1hour and 15 minutes chart time frame.
On the 1 hour xauusd chart time frame, the gold price should be below both the 100 and 200 simple moving average indicator. We then move to the 15 minute chart timeframe to generate a xauusd Signal.
On 15 minute chart, when price reaches the 10 or 20 pips range below the 200 simple moving average indicator, we open a sell gold trade and place a stop loss 20 pips above 200 simple moving average indicator.
100 and 200 simple moving average indicator Sell XAUUSD Trading Signal
With this xauusd trading strategy method gold price will generally bounce of these levels because many XAUUSD traders watch these levels, & open similar trades at around the same point.
These areas act as short term resistance or support levels within the gold price xauusd charts.
XAUUSD Trading Profit Taking level for This Strategy
With this xauusd trading strategy the gold price will bounce & make a move in the direction of the original XAUUSD trend. This move will range from 50 - 80 pips.
Best profit-taking level would therefore be considered to be 50 - 60 pips from the 200 simple moving average technical indicator.
