XAUUSD Trading 20 Pips XAUUSD Price Range Moving Average XAUUSD Strategy
The 20 pips gold price range moving average xauusd strategy is used on the 1 Hour xauusd chart and 15 minute xauusd chart. On the 1 hour and 15 minutes xauusd chart time frames we use the 100 and 200 simple moving average xauusd technical indicator.
Both the 1 Hour and 15 minute xauusd chart time frames will use the 100 and 200 SMA (Simple Moving Average Indicator) to determine the direction of the XAUUSD market trend.
The 1 Hour xauusd chart time frame checks the long term direction of the XAUUSD trend, upward or downward trend, depending on the direction of the moving averages. All gold trades opened should be opened in this xauusd trend direction.
We then use the 15 minute xauusd chart to find the optimal point to enter gold trades. XAUUSD trades are opened only when the gold price is within 20 pips range of the 200 simple moving average, if gold price is not within this pip range gold trades are not opened.
XAUUSD Uptrend - Bullish Market Trend
To generate buy bullish xauusd signals using the 20 pips moving average XAUUSD Trading strategy, we shall use the 1hour and 15 minute xauusd chart time frame.
On the 1 hour xauusd chart time frame the gold price on the chart should be above both the 100 and 200 simple moving average. We then move to use a lower xauusd chart time frame - the 15 minute chart time frame to generate a xauusd trade signal.
On 15 minute xauusd chart time frame, when gold price reaches the 20 pips range above the 200 SMA, we open a buy xauusd trade and place a stop loss 30 pips below the 200 SMA. Stop loss can be adjusted to the amount of Pips that are suitable for your risk but to avoid being stopped out by normal XAUUSD trading volatility its best to use a reasonable stop loss stop loss.
A buy xauusd trade can also be opened when the gold price touches the 100 simple moving average, provided the gol price is not very far from the 200 simple moving average. Normally the 100 SMA will be within the 20 pips range of the 200 SMA.
100 and 200 SMA XAUUSD Buy XAUUSD Signal - 20 Pips Moving Average XAUUSD Strategy
XAUUSD Trading Downtrend/Bearish Market
To generate sell (short xauusd signals) using the 20 pips moving average XAUUSD Trading strategy, we shall also use the 1 hour xauusd chart time frame and 15 minute xauusd chart time frame.
On the 1 hour xauusd chart time frame, the gold price should be below both the 100 and 200 SMA. We then move to the 15 minute xauusd chart time frame to generate a xauusd Signal.
On 15 minute xauusd chart, when gold price reaches the 20 pips range below the 200 SMA, we open a sell xauusd trade and place a stop loss 30 pips above the 200 simple moving average.
100 and 200 Simple Moving Average XAUUSD Sell XAUUSD Signal - 20 Pips Price Range Moving Average XAUUSD Trading Strategy
With this xauusd strategy method gold price will generally bounce of these support and resistance levels because many xauusd traders watch these levels, and open similar gold trades at around the same point.
These support and resistance levels act as short term resistance or support levels within the gold price charts.
Profit Taking level for This XAUUSD Strategy
With this xauusd strategy the gold price will bounce and make a move in the direction of the original XAUUSD trend. This move will range from 60 - 70 pips.
The best xauusd profit taking level would therefore be considered to be 60 to 70 pips from the 200 SMA.