Technical Analysis of MA Indicator

Trend Identification

The moving average technical indicator can be used as an technical indicator for generating signals. A buy or a sell signal is generated when the price either moves above or below the moving average technical indicator, respectively.

If the Moving Average is moving upwards in diagonal manner then the general market trend is up-wards.

If the on the other hand the Moving Average is heading downwards in diagonal manner then the general market trend is downward.

Upward Trend/Bullish Trend

If the Moving Average is moving up, then the trend is up-ward and the signal generated is a buy/bullish gold trade signal.

As long as the gold price is above the moving average then the trend will remain as an up-wards trend. The moving average will act as a 'support level' & price action of the gold chart candlesticks should not close below the MA.

Buy Signal

When the gold price moves above the Moving Average and closes above the moving average, a buy signal is generated.

Traders, who want to confirm the trade signal before implementing it, should wait until the Moving Average line turns & starts to move in an up-ward trend direction. It's always best to wait for the confirmation signal so as to minimize chances of a whipsaw.

Up-wards Trend - How to Day Trade XAUUSD: A Detailed Tutorial to Day Trade Methods

Downwards Trend/Bearish Market

If the Moving Average is moving down, then the trend is downwards and the signal generated is a sell/short trade signal.

As long as the gold price is below the MA then the trend will remain as a downward bearish trend. The Moving Average will act as a "resistance level" & price action of candlesticks should not close above the MA.

Sell Signal

When the gold price moves below the Moving Average and closes below the moving average, a sell signal is generated.

Traders who want to confirm the signal should wait until the Moving Average line turns & starts to move in a downwards direction. This will reduce the chance of trading a whipsaw.

Downwards Trend - How to Day Trade XAUUSD: A Detailed Tutorial to Day Trade Methods

XAUUSD Trading Range Market signals

Range Gold Market signals can also be identified using the MA Indicator.

MA Crossover Strategy Method Strategy

The moving average crossover method is also another signal generation strategy that is more favored by traders compared to the above signal generation strategy method. Moving average crossover strategy is also the simplest form of a system widely used by online gold traders. This Moving Average crossover method is combined with other technical indicators to form more complex systems and gold strategies.