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XAUUSD Price Action 1.2.3 Price Action XAUUSD Strategy

XAUUSD Price action xauusd is the use of only gold price charts to trade XAUUSD, without the use of technical chart indicators. When trading with this price action strategy, candle charts are used.

XAUUSD Price Action Strategy in XAUUSD

The best use of this price action strategy is achieved when the price action signals generated are combined with other indicators so as to provide extra confirmation. This is then used a xauusd system.

The xauusd system includes price action trading together with indicators trading so as to come up with a xauusd system or a xauusd strategy based on these two methods of xauusd analysis.

Price Action 1-2-3 Breakout XAUUSD Strategy

This price action strategy uses 3 chart points to determine the breakout direction of a xauusd. The 1-2-3 price action strategy uses a peak and a trough, these points forms point 1 & point 2, if market moves above the peak the signal is to go long, if it moves below the trough the trading signal is to short. The breakout of point 1 or point 2 forms the third point.

XAUUSD Price Action 1.2.3 Price Action XAUUSD Strategy - Price Action XAUUSD Strategy

XAUUSD Price Action 1.2.3 Price Action XAUUSD Strategy

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

Combining Price Action Method with other Indicators

Good indicators to combine price action trading with are:

  • RSI

  • Moving Average Indicator

Traders should use these two technical indicators to confirm if the direction of breakout price action signal is in line with the trend direction shown by these 2 chart indicators.

If the direction is also the same as those of these indicators then traders can open a trade in the direction of price action signal.

If not traders should not open a trade as there's more likely a chance that this price action signal may be a xauusd whipsaw.

Just like any other chart indicator in XAUUSD, price action also has whipsaws and there is a requirement to use this price action strategy with other indicators as a combination with other signals from these indicators as opposed to just using this price action strategy alone.

Price Action XAUUSD Strategy - How to Choose the Types of How Does a System Work

XAUUSD Price Action XAUUSD Strategy