How to Analyze XAUUSD Retracement Technical Indicator XAUUSD Strategy
How Do I Read XAUUSD Retracement Technical Indicator XAUUSD Strategy?
A good gold price retracement strategy to use is the fibonacci retracement indicator. Fibonacci retracement indicator is used by many traders as a gold price retracement strategy xauusd indicator tool.
The fibonacci retracement indicator is placed on a xauusd chart and this Fibonacci Retracement indicator then calculates the gold price retracement levels on the gold charts.
Fib Retracement Strategy Examples on Upward XAUUSD Trend & Downwards Gold Trend
XAUUSD Trade Retracement on Upwards XAUUSD Trend
In the XAUUSD Retracement Strategy xauusd example shown below the gold price is moving up between chart point 1 and chart point 2 then after chart point 2 it retraces down to 50.0% gold price retracement level then gold price continues moving up in original upward trend. Note that this gold price retracement indicator is plotted from point 1 to point 2 in the direction of the XAUUSD trend (Upward Direction).
Because we know this is just a retracement based on our xauusd chart trend - using this retracement indicator, we put a buy order just between the levels 38.2% and 50.0% and our stoploss just below 61.8% pull back mark. If you had put a buy at this point in the xauusd trade xauusd example shown below you would have made a lot of pips after the price retracement reached the Fibonacci 50.0% level and then continued moving in the original upward trend.
How Do You Trade XAUUSD Price Retracement on Upwards XAUUSD Trend - XAUUSD Retracement Trading Strategy
Explanation for the Above XAUUSD Retracement XAUUSD Strategy Example
Once the gold price hit the 50.0% gold price retracement level, this gold price retracement level provided a lot of support for the gold price, & afterwards gold market then resumed the original upward trend and continued to move upwards.
23.6% gold price retracement level provides minimum support and is not an ideal place to place a gold trading order.
38.2% gold price retracement level provides some support but gold price in this xauusd example continued to retrace up to the 50% zone.
50.0% gold price retracement level provides a lot of support and in this xauusd example, this was the ideal place to place a buy gold trading order.
For this XAUUSD Retracement Strategy xauusd example, the gold price retracement reached the 50.0% gold price retracement level, but most of the time the xauusd market will retrace up to 38.2% gold price retracement level and therefore most of the time xauusd traders set their buy limit orders at the 38.2% Fibonacci price retracement level, while at the same time placing a stop just below 61.8% Fibonacci gold price retracement region.
XAUUSD Trade Retracement on Downwards XAUUSD Trend
In the XAUUSD Retracement XAUUSD Trading Strategy xauusd example shown below the gold market is heading down between chart point 1 & chart point 2, then after chart point 2 the gold price then retraces up to 38.2% gold price retracement level then it continues moving downwards in the original downward trend. Note that this gold price retracement indicator is drawn from chart point 1 to chart point 2 in direction of the XAUUSD trend (Downward Direction).
Because we know this is just a gold price retracement based on the gold chart trend we put a sell order at 38.2% gold price retracement level and a stop loss just above 61.8% gold price retracement region.
If you had put sell order at the 38.2% gold price retracement level as shown on the xauusd trade below you would have made a lot of xauusd trading pips afterwards after the price reached the 38.2% gold price retracement level and then resumed the downward xauusd trend.
In this trade the gold price retracement of gold price reached 38.2% gold price retracement level and did not get to 50.0% gold price retracement level. It is always good to use 38.2% gold price retracement level because most times the gold price retracement does not always get to 50.0% gold price retracement region.
XAUUSD Trade Retracement on Downwards XAUUSD Trend - XAUUSD Retracement Strategy
Explanation for the Above XAUUSD Retracement Strategy Example
The above XAUUSD Retracement Strategy xauusd example is a gold price retracement trading set up where the price retraces immediately after touching the 38.20% Fibonacci Retracement Level.
This XAUUSD Retracement level provided a lot of resistance for the gold price retracement, this was the best place for a trader to set a sell limit order as a xauusd market quickly moved down after hitting this gold price retracement region.
How Do You Interpret XAUUSD Retracement Technical Indicator XAUUSD Strategy?
