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 timeframes we use the 100 and 200 simple moving average technical 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 trend.

The 1 Hour chart timeframe checks the long term direction of the trend, upward or downward trend, depending on the direction of the moving averages. All trades opened should be opened in this trend direction.

We then use the 15 min chart to find the optimal point to enter trades. XAUUSD trades are opened only when the price is within 20 pips range of the 200 simple moving average, if trading price is not within this pip range trades are not 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 minute chart timeframe.

On the 1 hour chart timeframe 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 timeframe to generate a trade signal.

On 15 min chart timeframe, when price reaches the 20 pips range above the 200 SMA, we open a buy 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 level.

A buy trade can also be opened when the price touches the 100 simple moving average, provided the 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 Buy Signal - 20 Pips Moving Average XAUUSD Method

XAUUSD Downtrend/Bearish Market

To generate sell (short signals) using the 20 pips moving average XAUUSD strategy, we shall also use the 1 hour chart timeframe and 15 minute chart timeframe.

On the 1 hour chart timeframe, the price should be below both the 100 and 200 SMA. We then move to the 15 min chart timeframe to generate a Signal.

On 15 min chart, when 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 MA Sell XAUUSD Signal - 20 Pips Price Range MA Method

With this xauusd strategy method trading price will generally bounce of these support and resistance levels because many traders watch these levels, and open similar trades at around the same point.

These support & resistance levels act as short term resistance or support levels within the price charts.

Profit Taking level for This XAUUSD Strategy

With this xauusd strategy the price will bounce & 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.