Trading XAUUSD Define a Trend-
Definition of XAUUSD Trends
To identify a xauusd traders need to use xauusd tools that help in determining and identifying a trend.
The most popular xauusd tool to identify a xauusd trend is:
XAUUSD Trendlines
A trend line depicts the points of support and resistance for the price, based on the direction of market.
For an up-wards moving xauusd market xauusd trend the trendline will highlights the points of support
For a down-wards moving xauusd market xauusd trend the trend will display levels of resistance
These xauusd trend-lines are mainly used by many trader to determine these resistance & support areas.
XAUUSD Trendline is a straight line that connects 2 or more price points on a xauusd chart & then extends into the future to act as a level of support or resistance. There are two types of gold trend: upward trend & downward trend. Trend line is an aspect of trading analysis that uses line studies to try & predict where the next price move will head to. A trader should know how to draw and interpret the signals generated by this trend line tool.
The basis of this xauusd trend line analysis is based upon the idea that markets move in trends. Trend-lines are used to show 3 things.
- The general price direction - upward or downward.
- The strength of the current move - and
- Where future support and resistance will be likely located
If gold trend lines forms in a certain direction then market usually moves in that direction for a period of time until a time when trend-line is broken.
Plotting these trendlines on xauusd chart highlights the general xauusd trend of the xauusd market which can either be up-wards or downward.
Below is an example of how to draw these trend line on charts
XAUUSD Trend-Line Guide: How to Draw & Trade Up-wards Move Using Trendlines
XAUUSD Trend-Line Guide: How to Draw & Trade Upwards Move Using Trend Lines
XAUUSD Trend-Line Guide: How to Draw and Trade Downwards Move using Trendlines
XAUUSD Trend-Line Guide: How to Draw and Trade Downwards Move using Trend Lines
