XAUUSD Long - Short - Charts
In trading, there are two types of trades, these two are:
- Long (buy) - Going long means the trend is buy/bullish.
- Short (sell) - Going short means the trend is sell/bearish.
Buying/Long vs Selling/short in XAUUSD Trading
Both terms in XAUUSD trading, refer to things traders do when opening a trade.
Buying Long - xauusd term used by traders when buying gold(when opening a buy trade).
Selling short - xauusd term used by traders when selling gold(when opening a sell xauusd trade).
Long - Long is another term used to refer to buying in xauusd, If a trader goes long it means that he buys the xauusd that is heading in an upward trend direction. When the price is moving in an upward trend the market trend is referred to as bullish trend.
Short - Short is a term used to refer to the selling of xauusd that is going in a downward trend direction. When the price is going downward then it is known as to as a bearish trend.
Basically the term, "selling short" can be refer to selling in the markets. Selling short is used to transact a xauusd that is predicted to depreciate in its value compared to another, when this xauusd is sold then it is the same as not holding value in this gold and holding the same value in another form against which this xauusd is traded against - mostly US Dollars.
Buy/Long
If the price is going up we buy, this is referred to as going long - Therefore long is just another term for buy. When the market trend is going up it is referred to as bullish, this is when a buy trade is placed. A bullish trend is identified by drawing an up-wards trend-line on a chart. The example illustrated below shows a long/buy trade signal.
Buy/Long
Sell/Short
If the price is going down we sell, this is known as going short. When the market trend is going down it is referred to as to as a bearish. The example shown below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downwards trend line on a chart. The example illustrated below shows a short/sell trade signal.
Sell/Short - XAUUSD Buy Trade and Sell Trade
XAUUSD Charts
A chart provides a visual representation of trading prices (drawn on the y-axis) against time (drawn on the x-axis) for trading price interval. The movement of prices is plotted on these charts. The chart can be drawn as candle charts like the one below or as line charts or bar charts.
XAUUSD Chart - Candles Charts
The three common types of charts used in xauusd are:
- Candlesticks Charts
- Line Charts
- Bar Charts
These 3 types are covered in the lesson XAUUSD Chart Types.
Platform
This is the software which is provided by a broker to help traders place their trades. Once you download & installs this software on your computer you can then begin to trade in the market. All trade transactions are executed through this platform. If you want to learn a platform, MetaTrader 4 Platform Software is a good platform to begin with.
To set these trade orders, open MetaTrader 4 Platform Software, open a 'chart', rightclick the "chart', select 'New Order' & then select order either sell or buy as pictured below. (Short Cut Keyboard Keys - Press F9)
Placing Buy Long Order and Sell Short Order on MT4
