How to Trade Breakouts in Gold Trading

With consolidation trading patterns the xauusd market can move in any direction after a gold price break-out. Consolidation xauusd patterns are used to identify break-out patterns in xauusd charts. There are 2 types of consolidation patterns that form on xauusd charts:

• Symmetric Triangles - Consolidation Chart Patterns
• Rectangles - Range Gold Chart Patterns

Consolidation Trading Patterns

Symmetrical triangles are xauusd patterns with converging trend-lines that form a gold price consolidation period that signals there is going to be a gold price breakout in one direction after this xauusd chart pattern breaks out in one direction. The xauusd buy signal from a symmetrical triangle is the upside gold price break, while a downside gold price break is a xauusd sell signal. Ideally, a the gold price breaks out from a consolidation chart pattern prior to reaching the apex of the triangle.

XAUUSD Trend lines xauusd trend lines can be drawn connecting the lows & highs of the consolidation pattern for the gold price, the trend lines formed are symmetric and converge to form an apex - symmetric triangle pattern. A gold price break out should occur somewhere between 60% - 80% into the triangle consolidation chart pattern. An early or late xauusd trading break out is more prone to xauusd trading whipsaws, and therefore less reliable. After a gold price breakout to one side the apex of the symmetric triangle forms the support and resistance levels for the gold price. XAUUSD price that has broken out of the consolidation chart pattern should not retrace past the apex. The apex is used as a stoploss setting level for the open gold trades placed after a gold price breakout.

When xauusd trading consolidation patterns form we say that the gold market is taking a pause before deciding the next direction to take - this also signals an impending gold price breakout - How to Trade Breakouts in XAUUSD Trading - How Do You Identify Breakout Pattern? - Breakout Strategy XAUUSD.

These xauusd trading consolidation patterns form when there is a tug of war between buyers and sellers and the gold market can't decide which way to proceed.

Consolidation Chart Patterns - How Do I Trade Breakouts in Gold Trading? - How to Identify Breakout Pattern

However, this consolidation chart pattern cannot go on forever and just like in a tug of war one side eventually wins, the xauusd chart examples below shows how the consolidation pattern eventually had a gold price break out and moved in one direction.

How to Identify Break-out Pattern - Break-out Strategy XAUUSD Trading - Breakout Trading Strategy Tutorial - The Complete Break-out Trader Tutorial

How to Identify Break-out Pattern - Break-out Strategy XAUUSD Trading - Breakout Trading Strategy Guide

After gold price consolidating, If gold price breaks-out the upper line we open xauusd buy trades, if gold price breaks-out the lower line we open sell gold trades.

How to Trade Break outs in XAUUSD Trading

A rectangle consolidation chart pattern is a trading range with narrow gold price action which forms a consolidation period in xauusd market. The xauusd range is defined by two parallel xauusd trend lines which are horizontal and these indicate the presence of support and resistance levels at this particular area. Rectangle consolidation chart pattern is drawn on a xauusd chart using a rectangle, therefore, the name xauusd trading rectangle chart pattern.

For this consolidation chart pattern, gold price forms a series of highs & lows that can be connected with horizontal xauusd trendlines that are parallel to each other. Rectangle consolidation pattern forms over an extended period of time giving this gold pattern its rectangle shape.

A xauusd trading breakout of gold price action from this rectangle consolidation pattern occurs when either of the horizontal line is penetrated & the xauusd range of this rectangle xauusd pattern is broken. An upside gold price break out is a buy signal. A downside gold price break out is a sell gold trade signal.

Rectangle Chart Pattern - How Do I Trade Breakouts in Gold Trading? - How to Identify Break-out Pattern - Breakout Strategy XAUUSD

XAUUSD Price Breaks Out of the rectangle consolidation range after a period of time & price continues to move upwards after an upward gold price breakout.

How to Trade Breakouts in XAUUSD Trading - How Do You Identify Breakout Pattern? - Breakout Strategy XAUUSD Trading - Breakout Trading Strategy Guide