XAUUSD 20 Pips Price Range MA Strategy
The 20 pips trading price range moving average xauusd strategy is used on the 1 Hour chart and 15 minute chart. On the 1 hour and 15 minutes chart time-frames we use the 100 and 200 simple moving average MA indicator.
Both the 1 Hour and 15 minute chart timeframes will use the 100 and 200 SMA (Simple Moving Average Indicator) to determine the direction of the market price trend.
The 1 Hour chart timeframe checks the long term direction of the market price trend, upwards or downwards trend, based on the direction of MAs. All trades opened should be opened in this trend direction.
We then use the 15 min chart to find an optimal point to enter trades. XAUUSD trades are opened only when price is within 20 pips range of the 200 simple moving average, if trading price is not within this pip range trades aren't opened.
XAUUSD Uptrend - Bullish Market Trend
To generate buy bullish signals using the 20 pips moving average XAUUSD strategy, we shall use the 1hour and 15 Min timeframe.
On the 1 hour chart time-frame the price on the chart should be above both the 100 and 200 simple moving average. We then move to use a lower chart timeframe - the 15 minute chart time-frame to generate a trade signal.
On 15 min chart timeframe, when price reaches the 20 pips range above 200 SMA, we execute a buy trade and place and set a stoploss order 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 volatility its best to use a reasonable stop loss level.
A buy trade can also be opened when price touches the 100 simple MA moving average, provided the price is not very far from the 200 simple moving average. Normally 100 SMA will be within the 20 pips range of the 200 SMA.
100 and 200 SMA Buy Signal - 20 Pips Moving Average XAUUSD Method
XAUUSD Downtrend/Bearish Market
To generate sell (short signals) using 20 pips MA XAUUSD strategy, we shall also use the 1 hour chart timeframe and 15 Min timeframe.
On the 1H chart timeframe, price should be below both the 100 and 200 SMA. We then move to the 15 min timeframe to generate a Signal.
On 15 min chart, when the price reaches and gets to the 20 pips range below the 200 SMA, we open a sell xauusd gold trade and place a stop loss order 30 pips above the 200 simple moving average MA.
100 and 200 Simple MA Sell XAUUSD Signal - 20 Pips Price Range MA(Moving Average) Method
With this xauusd strategy method trading price will generally bounce of these support & resistance levels because many traders watch these levels, & open similar trade positions at around the same point.
These support & resistance zones act as short-term resistance or support levels within price charts.
Profit Taking level for This XAU/USD Strategy
With this xauusd strategy the price will bounce & make a move in the direction of the original XAU/USD trend. This move will range from 60 to 70 pips.
The best xauusd profit taking level would thenceforth be considered to be 60 - 70 pips from the 200 SMA.
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