Learn XAUUSD Strategies
Before coming up with a xauusd plan a trader must learn about the various xauusd strategies that they can sue to trade xauusd. Coming up with the right xauusd strategy can increase your chances of becoming more successful in xauusd.
For traders who want to learn about xauusd strategies there are 50 strategies listed in the strategies section of this strategy. This strategy section also shows traders how combine these strategies to come up with a xauusd system. The xauusd is a set of rules that will be used by traders to generate signals. For example the system rules will specify how two or more indicators will be used together to generate a buy or a sell signal.
As a trader the strategy you choose should be applied in your trading once you decide what type of trader you're & what type of trading method you will be using to analyze the market moves.
For examples you may decide that you want to be a scalper you will use your scalping strategy & only open traders for a few minutes. If you're a xauusd trend trader you will use your strategy after you've decided the trend of the trading market. If the trend is upward you'll use your strategy to open buy trades.
If you are a day trade you will use your trading strategy to open trades that will only be opened for a few hours. Your trades should all be closed during the day and you will not hold your trades overnight. As for the trading method which may be that of trend following you will first draw xauusd trend-lines on the chart to figure out the overall market xauusd trend & after that you will then apply your trading strategy to open trades.
In analysis there are various techniques used to trade trading which a trader may use to ascertain which of these methods of trading they will be using when trading the market. After choose in their method traders will then apply their strategy to open trades.
Types of XAUUSD Methods
There are 2 general methods of trading the market, these are:
1.Trend Trading
2.Range Trading
Trend Trading
In this method a trader will first of all determine the overall market xauusd trend before applying their strategy to open trades.
To determine the trend - this can either be an upward trend or a downward trend.
A trader may use trend lines or moving averages to determine the overall market trend. After determining the market xauusd trend then the trader can use their strategy to open trades.
For example a trader may determine that the market xauusd trend is upward by using moving averages. The trader may then use a xauusd indicator such as Bollinger bands and open trades once the price retraces to the lower Bollinger band because this lower band will act as the support level of price. Therefore the trading strategy that the trader will be using is the strategy of resistance and support levels & the trader will be using Bollinger bands to determine these points and open and close trades based on these points.
Range Trading
Range trading is a method of xauusd trading that move within a particular band of prices and only oscillates between these two points without moving much outside these two points.
A trader will then use the strategy of support & resistance to determine which levels to open buy or sell trades. The trader will draw a support line and a resistance line. The support level will be used to open buy trades & the resistance level will be used to open sell trades.
The most popular technique between these 2 is the trend trading method. Traders should always try to trade with the trend trading technique as this method is the most reliable technique when it comes to trading xauusd. Even though sometimes the market will be trending and at other times the market will be moving in a range when the market is consolidating traders should try to trade the market only when there is a trend. After determining the trend traders will then use their strategy to determine when to open buy or sell trades that are in the direction of the overall market trend.
Once you have determined what type of trader you're: scalper, day trader or swing trader you should then come with the following:
1.Trading Method
2.Strategy
After coming up with this 2 you will then combine these 2 and use these to detect when to buy or close trades.
You can then practice trading on the practice trading account so as to determine profitability of your method and trading strategy. You'll then use the results to improve the profitability of your trading technique and strategy & once you have gained experience to trade with these 2 you can then open an account and start trading the live market.
