Trendline Trading Tutorial

Trading Upward Trend

Traders should use the upward trendline to open buy gold trades once the price tests the upward trendline.

Trading Upward Trend - Trendlines Tools

Trading Downward Trend

Traders should use the downwards trendline to open sell trades once the price tests the downward trend line.

Trading Upward Trend - Trendlines Tools

How to Use Trendlines Signals to Trade XAUUSD

The trend is your friend. Is a popular phrase among traders because as a trader you should never go against the trend. XAUUSD trend is the most reliable strategy used to trade trading because once the prices start to move in one direction they can move in that direction for quite some time within the trend - therefore using this trend strategy gives traders the opportunity to make profits from the online market.

To identify a trend - traders use trendlines. XAUUSD trendlines are provided on the MT4 charts and traders can use these trend line drawing tools on the MT4 platform to draw trendlines on charts.

Traders can then analyze trends on the charts using these trendlines.

Guidelines of How to Draw Trendlines on Charts

1. Use candle charts to draw trendlines

2. The chart points used to draw the trendlines - upward trendlines are along the lows of the price candlestick bars in a bullish trend. An upwards bullish trend is defined by higher highs & higher lows of price.
3. The chart points used to draw the trend line - downward trendlines are along the highs of the price bars in a bearish trend. A bearish downward trend is defined by lower highs & lower lows of the price.
4. The chart points used to draw the trend lines are extremes points - the high or the low gold price. These extreme price points are considered important because a price close beyond the extreme tells traders the trend might be reversing. This is an entry or an exit signal.
5. The more times a trendline is tested by gold price but it isn't broken, then the more powerful the market trend signal.