Trading Identify a Trend
How to Identify Trend in XAUUSD Trading
When it comes to identifying trends in xauusd - traders need to learn the correct way of identifying xauusd trend on xauusd charts.
A trend is the general direction of price in the market and this general direction can either be upwards or downwards. When the trend is upwards it means that prices are closing higher than where they opened and hence the general xauusd trend direction of prices is upwards. When the trend is downwards it means that prices are closing lower than where they opened & hence the general xauusd trend direction of prices is downwards.
To identify a xauusd trend trader will use a series of price highs or price lows.
Traders then will draw a xauusd trend line connecting price highs or price lows and this xauusd trend line will then indicate the direction of the trend whether upwards or downwards.
Upward Trend
To identify a xauusd upward trend xauusd trader will identify gold price lows that are sloping upwards and then use a xauusd trend line - upward xauusd trend line to connect these price lows and once this trend line is drawn on the chart it'll then be used to identify the upward trend.
Downward Trend
To identify a xauusd downward trend xauusd trader will identify gold price highs that are sloping downwards and then use a xauusd trend line - downwards xauusd trend line to connect these price highs & once this trend line is drawn on the chart it'll then be used to identify the downwards trend.
Once xauusd traders draw & spot a xauusd trend using xauusd trend line - traders will then open trade transactions in the direction of the xauusd trend. This is because once prices start to head in a xauusd trend direction - the prices will keep moving in that direction for some time and this is why traders identify the trend first and use this xauusd trend to open trades in the direction for the trend.
Trading Identify a Trend - Trading Identify a Trend - How to Determine if there is a Trend - How to Identify Trend in Trade - How to Identify a Trend
