Learn Courses

XAUUSD ranks as one of the largest financial markets worldwide. Traders enter it for speculation. They draw in for these reasons.

Leverage - xauusd leverage means traders can earn more money in xauusd by putting in only a small amount of their own money. This is because online traders can borrow money from their online broker to trade with, using leverage.

Liquidity means XAUUSD ranks among the biggest markets worldwide. Traders buy and sell around the clock all week. So many players make it easy to enter or exit trades in seconds.

Low Costs in XAUUSD Trading - High trader volume keeps costs down. Traders only pay spreads. No other fees apply. Spreads occur only when you open a trade. No trades mean no costs.

This part shows the different lessons that new or current traders can learn to help them understand trading. After traders learn the basics of gold trading, they can learn more advanced lessons to help them with their trades.

The analysis tutorials are designed to assist novice traders in understanding the various concepts of trading analysis.

Basics of Technical Analysis

Candle Charts

Traders rely on charts as their main tool for analysis. Three types exist: line charts, bar charts, and candle charts. Candlestick charts see the most use among traders. They offer a clear, eye-catching view of price moves. Colors show direction: blue for closes above opens, red for closes below. Candles also mark the gap between open and close prices. That forms the body, like wax on a real candle. The top price point uses a shadow line. It's a thin line sticking up from the body, like a wick. A bottom shadow shows the low price point.

The data encoded by these candlesticks is referred to as O-H-C-L, which systematically denotes the Opening price, the High reached, the Low attained, and the Closing price.

Japanese candlesticks came from an 18th-century rice trader named Homma Munehisa. He started out in the futures market, shifted to Tokyo, and built a legendary track record - people say he notched over 100 winning trades in a row using this charting style.

In addition to showing the graph representations of price traders also use candle patterns to gauge and determine the strength of the price movement. Traders also study these candle patterns so that to learn how to interpret and trade signals from the different candle patterns. Traders wanting to about the various candles patterns can learn from our section under the trading analysis lessons, the various candle patterns used to trade are:

1.Long & short Candles

2.Spinning Tops and Doji Candlesticks

3.Hammer Candle Pattern & Hanging Man Candle Pattern

4.Inverted Hammer Candle Pattern and Shooting Star Candle Pattern

5.Piercing Line Candlestick Pattern & Dark Cloud Candle Pattern

6.Morning Star Candle Sticks, Evening Star Candles & Engulfing Candles Patterns

Support and Resistance Areas

Some people who trade also call these spots lines of support and resistance. The ideas of support and resistance points are about price levels where it's hard for prices to go past and keep moving beyond those points.

At these specific technical junctures, market participants are inclined to perceive the asset's valuation as either undervalued or overvalued.

Support

Support levels stop an asset's price from falling further. They act like a floor. Prices can't drop below these points.

Resistance

Resistance represents a price level that prevents an asset's value from rising further. These levels act as ceilings, halting upward market movements.

Therefore, these established price levels can be leveraged by the trader to ascertain optimal entry points where the potential return significantly outweighs the risk. For example, a trader might initiate a purchase transaction at a support zone, setting a protective stop loss a short distance below that level, motivated by the belief that the price currently represents good value. Alternatively, a trader might execute a short sale at a resistance zone, placing a protective stop loss slightly above the resistance area. This short position is taken because the trader perceives the current price as excessively high, anticipating that fewer market participants will buy the XAUUSD instrument at such a premium, thus increasing the probability of a near-term downward price movement rather than continued upward momentum.

TrendLines

Trend lines are used to identify the general direction of the market.

Support and resistance lines can slant like steps in a staircase. They form a trend. A trend means steady price moves up or down.

A xauusd trend-line depicts these points of support & resistance for the price.

A trend-line is a kind of trading analysis that uses lines to attempt to guess where prices may move next in value.

A xauusd trend line is a straight diagonal line that connects two or more price points and then extends into the future to act as line of support or resistance.

Trend lines rely on the idea that markets follow trends. They show three key things.

The general direction of price movement upwards/downwards.
The momentum of ruling market price movement and
Where future support & resistance of the current price movement are likely to be located at.

If a trend line points one way, prices tend to follow that path for a while. They keep going until the line breaks.

Upward trend-line - When the cost goes up, a line also rises. This line is called an upward trend line.

In a downtrend, prices drop and form a line that slopes down. We call this a downward trend line.

Moving Averages Indicator

Moving averages are also employed in XAUUSD trading to ascertain the general trajectory of the market: MAs function as trend-following indicators that visually represent the prevailing price direction.

Traders often use two moving averages to check trend direction in this common setup. Our strategies section covers the moving average crossover system. It includes a short-period MA and a longer one, such as 5-period and 7-period MAs. Rising prices lift both lines. Falling prices pull them down. A trend reversal shows up as the two MAs cross from price shifts. This signal helps online traders enter new positions after the crossover, when both MAs point the same way. It also flags time to close trades and take profits on opposite crossovers.

Bollinger Band Indicator

The Bollinger Band is a highly favored technical indicator, also categorized as a trend-following tool, employed to illustrate the prevailing direction of the trading market. It consists of three distinct lines:

·Middle band - this is a MA of 20 periods

·Upper Band - shows upper limit of price

·Lower Band - shows lower limit of the price

Middle band will show the overall direction of the trend whether up or down.

The upper band is where you'd open a sell trade if the trend's going down, or close your buy trade and take profit if the market's moving up.

The lower part shows where someone should start a buy if the price is going up, or end their sell and get their profit at this point if the market is going down.

XAUUSD Fib Retracement Areas

Traders use Fib retracement zones to spot pullback ends. They open positions at these levels after price dips.

Information concerning Fibonacci retracement levels is detailed within the educational guides section of this website, categorized under trading analysis subjects. Traders can acquire knowledge on applying Fibonacci retracement levels, identifying which levels are frequently utilized for trade entry, and executing the plotting of these retracement lines using the Fib retracement tool.

All of these trading analysis tools are covered in the tactics section of this course site. There, traders can explore the concepts in more depth. View instances of their application in trade, along with numerous screenshots. This section demonstrates how to plot these technical instruments on charts and describes how signals are created.

Learn More Lessons & Courses:

Trade Forex Trading