How to Analyze XAUUSD Pullback on Up-wards XAUUSD Trend & Downward XAUUSD Trend

How Do I Read XAUUSD Pullback on Up-wards XAUUSD Trend & Downward XAUUSD Trend?

The price of a xauusd instrument doesn't move up-ward or down-ward in a straight line. Instead the price moves up or down in a zigzag pattern setup called a trend - in this price pullback pattern the price moves up-ward in a trend then it pulls back before it resumes the trend direction - in a downwards trend the price moves downward in trend direction & then retraces before resuming the trend direction.

What's a price pullback? A price retracement is a pull-back of price before the market resumes original xauusd trend movement.

Trading Example of Zigzag XAUUSD Price Movement: The example shown below shows price moving up in a zig zag pattern setup showing price trend and price pull-back.

The example shown below shows movement in an upwards market and price pull-back.

Interpret XAUUSD Pullback on Up-wards XAUUSD Trend & Downward XAUUSD Trend?

1-2: Price Moves Up - Trend Direction

2-3: Price Pullback

3-4: Price Moves Up - Trend Direction

4-5: Price Pullback

5-6: Price Moves Up - Trend Direction

The pull-back of price is illustrated on the above example - this represents a xauusd trading pull-back in an upwards trend.

How Do You Interpret XAUUSD Pullback on Up-wards XAUUSD Trend & Downward XAUUSD Trend?