Learn XAUUSD Courses
XAUUSD Trading is one of the largest financial market in the world. XAUUSD traders invest in the xauusd market popularly known as XAUUSD Trading for speculation purposes. XAUUSD traders are attracted to xauusd because of the following reasons:
XAUUSD Leverage - xauusd leverage means that traders can make more money in xauusd by investing little of their own capital. This is because traders can borrow money to trade with from their xauusd broker using gold trading leverage.
Liquidity - The fact that xauusd is one of the largest financial market in the world means that there are very many traders trading the xauusd market at any time of the day or night during the xauusd market week. The fact that there are many traders investing in this market make the xauusd market a very liquid market meaning trader can open and close trade in a matter of seconds.
Low Transaction Cost - Because in xauusd there are many traders trading at any one given time means that trade costs are lower because of this big volume of trade transactions taking place in xauusd trading market. The only transaction cost paid by the trader is the spreads; no other cost is paid by the traders. The spread is also only when a trader opens a trade: therefore if a trader does not trade then they do not pay any cost.
This learn xauusd tutorial presents the various xauusd education courses that technical traders or traders who want to learn technical analysis can learn from. After traders have learnt the basics of xauusd it is then time to learn more about technical analysis topics that they can use to trade with.
The xauusd technical analysis lessons can guide beginners on how to study the various technical analysis concepts.
Basics of XAUUSD Technical Analysis
Candlestick Charts
For technical traders the basic technical analysis tool that they use is the gold chart. There are three types of xauusd charts: line charts, bar charts & candle charts. The type of xauusd chart most commonly used by traders is the candlestick chart. This is because the candlestick chart has a visually appealing format that clearly represents the movement of gold prices, by displaying different colors for different movements; that blue color when prices close higher than they opened or red color that represents when prices close lower than they open. In addition these candlesticks show the distance between the open and close gold price and this forms the body of the candlestick. This body of the candlestick is looks similar to the wax part of a real candle. The highest point of the gold price will be drawn with what is known as a shadow, the shadow is a thin poking line that is drawn above the candlestick and it looks similar to the wick of a real candle. There is also another shadow drawn below the candlesticks and this one represents the lowest point of the gold price.
The information drawn by the candlesticks is known as OHCL - which represents Opening gold price, High, Low and Closing gold price.
Japanese candlesticks were created in Japan by a traditional rice trader who used to trade futures, his name was Homma Munehisa, he later moved to trading the Tokyo xauusd market that was in the 18th Century & he made a fortune trading the Tokyo xauusd market using these candles: He is said to have made over 100 consecutive winning trades.
In addition to showing the graphical representations of gold price traders also use candlestick patterns to gauge and determine the strength of the gold price movement. XAUUSD traders also study these candlestick patterns so as to learn how to interpret and trade signals from the various candlestick patterns. XAUUSD traders wanting to about the various candlesticks patterns can learn from our xauusd section under the technical analysis topics, the various candlestick patterns used to trade XAUUSD Trading are:
1.Long and short Candlesticks
2.Spinning Tops and Doji Candlesticks
3.Hammer Candle Pattern and Hanging Man Candle Pattern
4.Inverted Hammer Candlestick Pattern & Shooting Star Candlestick Pattern
5.Piercing Line XAUUSD Candle Pattern and Dark Cloud Cover Candle Pattern
6.Morning Star Candles, Evening Star Candlesticks & Engulfing Candles Patterns
Support & Resistance Levels
Some traders also refer to these levels as support & resistance lines. Concepts of support & resistance levels refers to gold price zones where it is difficult for the gold price break through & move beyond these levels.
At these levels traders are likely to perceive the gold price of the gold as being cheap or being expensive.
Support
Support prevents the gold price of an asset from getting pushed downward. Support levels are therefore regarded as the floor because these gold price levels prevent the xauusd market from moving gold prices downward past a certain point.
Resistance
Resistance prevents the gold price of an asset from getting pushed upwards. Resistance levels are therefore regarded as the ceiling because these gold price levels prevent the xauusd market from moving gold prices upward.
Therefore, these levels may be used by trader to determine where to open trades at the points where there is a high risk: reward ratio. For example a trader may open a buy xauusd trade at a support level and place a stop loss a few pips below that level. The trader buys at this point because they perceive the gold price to be cheap. A trader may open a sell xauusd trade at a resistance level and place a stop loss a few pips above the resistance level. The trader sells at this point because they perceive that at that point the gold price is very expensive and therefore there will be less people willing to buy that xauusd trading instrument because the gold price is very expensive and therefore the gold price is likely to start moving down soon rather than continue to move upwards.
Gold Trendlines
XAUUSD Trend lines are used to determine the general direction of the market.
Sometimes support and resistances are formed diagonally in a similar way like a staircase. This forms a trend, a xauusd trend is a sustained movement in one direction either upwards or downward.
A xauusd trendline depicts these points of support & resistance for the gold price.
XAUUSD Trend line is an aspect of technical analysis that uses line studies to try and predict where gold price will move next.
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.
XAUUSD Trendlines are based upon the idea that markets move in trends. XAUUSD Trendlines are used to show three things.
- The general direction of the gold price movement up or down.
- The strength of the current gold price movement and
- Where future support and resistance of the current gold price movement are likely to be located.
If a xauusd trend-line forms in a certain direction then gold price usually move in that direction for a period of time until a time when the trend line breaks-out.
Upward xauusd trend line - If gold price is moving up then a line is formed that is also moving up. This line is called an upward xauusd trend line.
Downward xauusd trend line - If gold price is moving down then a line is formed that also moves down. This line is called a downward xauusd trend line.
Moving Averages Gold Trading Technical Indicator
Moving averages are also used in xauusd to determine the general direction of the market. Moving average is a xauusd trend following technical indicators that is used to show the direction of the market.
The most common trading method of determine direction of the trend is by using two moving averages to form the moving average crossover xauusd system. The moving average crossover xauusd system is covered in our xauusd strategies section. The moving average crossover system is made up of two moving averages one with a lower period and the other with a higher period, for example a trader may use the 5 period moving average and the 7 period moving average, when price is moving up the two moving averages will also be moving up and when prices are moving down the two moving averages will also be moving down. Traders can also identify when a xauusd trend changes its direction because the two moving averages will cross over each other once there is a change in the direction of the gold price movement. This crossover signal is used by traders to determine when to open a new trade after the crossover signal has been generated and the two moving average start to move in the same direction. This crossover signal is also used to determine when to close a trade and take profit after there is a crossover in opposite direction.
Bollinger Bands Technical Indicator
Bollinger bands is a very popular xauusd indicator, it is also a xauusd trend following indicator and it is used to show the general xauusd trend of the xauusd trading market. Bollinger band is made up of three lines, these are:
·Middle band - this is a moving average of 20 gold price periods
·Upper Band -shows upper limit of gold price
·Lower Band - shows lower limit of gold price
Middle band will show the general direction of the trend whether up or down.
The upper band is where a trader will open a sell xauusd trade if the xauusd market xauusd trend is down or close their buy xauusd trade & take profit at this level if the xauusd market is trending upwards.
The lower band is where a trader will open a buy xauusd trade if the xauusd market xauusd trend is up or close their sell xauusd trade & take profit at this level if the xauusd market is trending downwards.
XAUUSD Trading Fib Retracement Areas
Fibonacci retracement levels are popularly used to determine the levels where gold price retracements are likely to go up to. XAUUSD traders use these retracement levels to determine where to open trades after a gold price retracement.
Fibo retracement levels are covered in the learn xauusd tutorials section of this website under the technical analysis topics. Trader can learn how to use the Fibonacci retracement levels, which levels are commonly used to open trades and how to draw these retracement levels using Fibonacci retracement indicator.
All these technical analysis methods are also covered on the xauusd strategies section of this learn xauusd course website and trader can learn more about these concepts & get example of these concepts are used in trading from this xauusd strategies section that has numerous screenshots illustrations of these technical tools and how they are drawn on gold charts along with explanation of they are used to generate trading signals.
