XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in XAUUSD

XAUUSD Price action trading is the use of only gold price charts to trade XAUUSD, without the use of technical chart indicators. When trading with this gold price action xauusd strategy, candlestick xauusd charts are used. This strategy uses lines and pre-determined patterns such as the 1-2-3 gold price action pattern xauusd strategy explained below.

Traders use this gold price action trading strategy because this analysis is very objective and allows the one to analyze the gold price moves based on what they see on the gold charts market movement analysis alone.

This gold price action strategy is used by many xauusd traders; even those that use technical indicators also integrate some form of gold price action in their xauusd strategy.

The best use of this gold price action strategy is achieved when the gold price action trading signals generated are combined with line studies so as to provide extra confirmation. These line studies include xauusd trend lines, Fibonacci retracement, support and resistance levels.

XAUUSD Price Action Trading

XAUUSD Price action strategy uses three xauusd chart points to determine the break out direction of xauusd price. The 1-2-3 gold price action trading strategy uses a peak and a trough, these chart points forms point 1 and point 2, if market moves above the peak the gold price action trading signal is long, if it moves below the trough the gold price action trading signal is to short. The break out of point 1 or point 2 forms the third chart point.

XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in Gold - XAUUSD Price Action Trading

XAUUSD Price Action Trading Strategy

XAUUSD Price Action 1-2-3 XAUUSD Price Action Strategy in Gold - XAUUSD Price Action Trading

xauusd traders use gold price action to try and predict where a xauusd trend direction might go. The xauusd market is either trending or ranging.

A trending market moves in a specific direction while a ranging market moves sideways, normally after hitting a support or resistance level.

Observing the behavior of gold price action provides this information of whether the xauusd market is trending or ranging or reversing its direction.

As with any other XAUUSD strategy this gold price action strategy should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern can give good signals in a trending market but will give whipsaws when the xauusd market is ranging, it is best to determine if the xauusd market is trending or not before you start using this strategy.