XAUUSD Consolidation Breakout Indicator

With XAUUSD Consolidation Breakout Pattern the price breakout can move in any direction.

Consolidation Chart Setup Patterns

Symmetrical triangles are patterns with converging trend-lines that form a consolidation period of the price. The technical analysis buy signal from a symmetric triangle is the upside price breakout, while a down-side price break-out is a technical xauusd sell signal. Ideally the market breaks out from a consolidation chart pattern - symmetrical triangle prior to reaching the apex of the triangle.

Gold Trendlines can be drawn connecting the lows and highs of the consolidation chart pattern phase, the trend-lines formed are symmetric & converge to form an apex - xauusd trading triangle pattern setup - xauusd trading consolidation pattern. A XAUUSD Consolidation Breakout should occur somewhere between 60-80% into the trading triangle chart pattern setup. An early or late Consolidation Breakout is more prone to whipsaw signals, & hence less reliable. After a price break-out the apex of the trading triangle forms support and resistance areas for the price. Price that has broken out of the apex should not retrace past apex of the trading triangle consolidation chart pattern. The apex of the triangle consolidation pattern is used as a stop loss order setting area for the open trades.

When these consolidation chart pattern setups form we say that the market trend is taking a break prior to deciding next direction to head.

These consolidation setups form when there's a tug of war between buyers and the sellers and the market can't decide which way to proceed.

XAUUSD Consolidation Breakout Chart Pattern - XAUUSD Consolidation Pattern XAUUSD

However, this consolidation pattern can't go on forever & just like in a tug of war one side eventually wins, looking at the Trading chart below see how the consolidation eventually had a trading break-out & moved in one direction - XAUUSD Consolidation Breakout Chart Pattern. Now how do you make sure you choose winning side?

XAUUSD Consolidation Breakout Indicator Meta Trader 4 XAUUSD Software - Consolidation Indicator - XAUUSD Consolidation Indicator Meta Trader 4 - XAUUSD Consolidation Pattern XAUUSD

XAUUSD Consolidation Breakout Chart Pattern - XAUUSD Consolidation Breakout Indicator - XAUUSD Consolidation Breakout Indicator MT4

Now back to our xauusd trading question, how do we ensure we're on right side of trade?

Well we wait til the price moves past one of the trend-lines of the trading triangle consolidation pattern and put buy orders or sell orders in that direction. If price xauusd trading breaks the upper consolidation line we buy, if it price breaks the lower consolidation line we sell.

Alternatively if you don't want to wait for a trading consolidation xauusd trading break-out - you can use xauusd trade ending orders.