XAUUSD Breakout Strategy Indicators

With consolidation patterns the xauusd market can move in any direction after a gold price break-out. Consolidation xauusd patterns are used to identify break out patterns in xauusd charts. There are 2 types of consolidation patterns that form on xauusd charts:

• Symmetric Triangles - Consolidation Patterns
• Rectangle Patterns - Range Gold Chart Patterns

Consolidation Chart Patterns

Symmetrical triangles are xauusd patterns with converging trend-lines that form a gold price consolidation period that signals there is going to be a gold price breakout in one direction after this xauusd chart pattern breaks out in one direction. The xauusd buy signal from a consolidation triangle is the upside gold price break, while a downside gold price break is a xauusd sell signal. Ideally, a the gold price breaks out from a consolidation chart pattern prior to reaching the apex of the triangle.

XAUUSD Trend lines xauusd trend lines can be drawn connecting the lows and highs of the consolidation pattern for the gold price, the trend lines formed are consolidation and converge to form an apex - consolidation triangle pattern. A gold price breakout should occur somewhere between 60% - 80% into the triangle consolidation pattern. An early or late xauusd trading breakout is more prone to xauusd whipsaws, and therefore less reliable. After a gold price breakout to one side the apex of the consolidation triangle forms the support and resistance levels for the gold price. XAUUSD price that has broken out of the consolidation chart pattern should not retrace past the apex. The apex is used as a stoploss setting level for the open gold trades placed after a gold price breakout.

When consolidation xauusd patterns form we say that the gold market is taking a break before deciding the next direction to take - this also signals an impending gold price breakout - XAUUSD Breakout Strategy Indicators - Gold Trading Breakout Indicator - Gold Indicator To Confirm Breakout.

These xauusd trading consolidation patterns form when there is a tug of war between buyers & sellers & the gold market can't decide which way to proceed.

Consolidation Patterns - XAUUSD Breakout Strategy Indicators - XAUUSD Break-out Technical Indicator

However, this consolidation pattern can't go on forever - the gold chart example below shows how the consolidation chart pattern eventually had a gold price breakout and moved in one direction.

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After gold price consolidating, If gold price breaks out the upper line we open xauusd buy trades, if gold price breaks-out the lower line we open sell gold trades.

Range Gold Chart Pattern

A rectangle consolidation pattern is a trading range with narrow gold price action which forms a consolidation period in xauusd trading market. The xauusd range is defined by two parallel xauusd trend lines which are horizontal and these indicate the presence of support and resistance levels at this particular area. Range consolidation chart pattern is drawn on a xauusd trading chart using a rectangle, therefore, the name rectangle chart pattern.

For this consolidation chart pattern, gold price forms a series of highs and lows that can be connected with horizontal xauusd trendlines that are parallel to each other. Range consolidation chart pattern forms over an extended period of time giving this xauusd chart pattern its rectangle shape.

A xauusd trading breakout of gold price action from this rectangle consolidation chart pattern forms when either of the horizontal line is penetrated & the xauusd range of this rectangle xauusd pattern is broken. An upside gold price break out is a buy signal. A downside gold price break-out is a sell signal.

Range Gold Chart Pattern - XAUUSD Breakout Strategy Indicators - XAUUSD Indicator To Confirm Breakout

XAUUSD Price Breaks Out of rectangle consolidation range after a period of time & price continues to move upward after an upward gold price breakout.

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