How Do You Use XAUUSD Stop Loss Orders in XAUUSD?

How to Use Stop Loss XAUUSD Orders in XAUUSD

Trading XAUUSD select you stop loss level the target stop loss should be based on various strategies depending on your type of xauusd method.

The 3 methods of selecting stoploss levels are:

Strategies and Methods of Setting Stop Loss Gold Orders in XAUUSD

Traders using a xauusd trading system must have mathematical calculations that reveal where the order must be placed.

A trader can also set a stop-loss order according to the technical xauusd indicators used to set these orders. Certain technical xauusd indicators use mathematical equations to calculate where the stop loss order should be set so as to provide an optimal exit point. These gold technical indicators can be used as the basis for setting these orders.

Traders also place these orders according to a predetermined risk to reward ratio. This technique of setting is dependent upon certain mathematical equations. For example a ratio of 50 pips stop loss can be used by a trader if the xauusd trade has the potential to make 100 pips in profit: this is a risk : reward ratio of 2:1

Other traders just use a predetermined percent of their total xauusd account balance.

To set a stoploss it is better to use one of the following methods:

1. Percent of Gold account balance

This stop-loss setting method is based on the percentage of account balance that the trader is willing to risk in xauusd trading.

If a trader is willing to risk 2% of xauusd account balance then the trader decides how far he will set the stop loss order level based on the trade position size that he has bought or sold.

2. Setting Stop Loss XAUUSD Orders using Support and Resistance Levels

Another way of setting stop loss orders is to use supports & resistance zones, on the trading charts.

Given that stop-loss orders tend to congregate at key points, when one of these levels is touched by the gold price, other xauusd orders are set off. Stop loss orders tend to accumulate just above or below resistance or support levels, respectively.

A resistance or a support level should act like a barrier for gold price movement, this is why they are used to set xauusd stop losses, if this barrier is broken the gold price movement can go towards the opposite direction of the original xauusd trade, but if this barriers (support & resistance levels) are not broken the gold price will continue heading in the intended direction.

Stop Loss Gold Order Level Setting using Resistance Level

Setting stoploss order above resistance level

Stop Loss XAUUSD Order Level using Support Level

Setting stop-loss order below the Support Level

3. Gold Trendlines

A XAUUSD trend-line can be used to set stop-losses where the stop loss order is set just below the trend line. As long as the trend line holds the trader will be able to continue making profits while & at the same time set this stop-loss order which will lock his profit once the trendline is broken.

Setting stoploss order below the trend-line

Example of where to set this stop-loss order using XAUUSD trend lines.

How Do You Use XAUUSD Stop Loss Orders in XAUUSD