RSI & Moving Averages

Good indicators to combine price action strategy with are:

• RSI

• MA Indicator

Traders should use these two indicators to confirm if the direction of price action break out signal is in line with the market trend direction shown by these two indicators.

If the direction of price action breakout is also the same direction as that of RSI & MA then traders can open a trade transaction in the direction of signal. If not traders shouldn't open a trade transaction as there's more likely a chance that this signal may be a whipsaw.

Just like any other indicator in xauusd trading, price action also has whipsaws & there a requirement to use this as a combination with other signal setups as compared to just using this trading strategy alone. This combination of trade set ups forms a price action system that traders can use to generate signals with.

RSI & MAs with Price Action Strategy Method - XAUUSD Price Action Trading System

What's Price Action Strategy?

XAUUSD Price action strategy is use of only price charts to trade trading, without the use of chart indicators.

When trading using this price action strategy, candle trading price charts are used. XAUUSD Price action setup uses lines and pre-determined price action patterns such as the 1-2-3 price action pattern that either develops one price action pattern or series of price action trade patterns.

Traders use price action patterns strategy because this price action analysis is very objective & allows a trader to interpret market price movements depending on what they see on the price charts alone.

XAUUSD Price action setups are used by many traders: even those that use indicators also integrate some form of price action strategy in their overall xauusd system like in the above example.

Best use of this price action strategy is achieved when the signals generated are combined with line studies so as to provide extra confirmation such as in price action system example above

XAUUSD Price Action 1.2.3 Break Out Pattern

This price action 1-2-3 strategy uses three chart points to determine break out direction of price action.

The 1-2-3 price action method uses a peak and a trough, these chart points forms point 1 & point 2, if market price goes above the peak the price action signal is a buy signal, if price action drops below the trough the price action signal is a sell signal. The price action break out of point 1 or point two forms the third price action point.

XAUUSD Price Action Strategy - XAUUSD Price Action Patterns