Moving Average Support and Resistance Levels
Moving Averages can be used as points of support & resistance on gold charts.
When gold price reaches the moving average, the Moving Average level can act as a point of support or resistance for the gold price.
Buy XAUUSD Signal
If gold price is on an upward xauusd trend and starts to retrace, then most xauusd traders might wait to buy at a better gold price when the price hits a support level. Traders will sometimes use the Moving Average to determine the support level.
A buy signal is generated when price hits the Moving Average, turns and starts moving in the upward trend direction. The xauusd signal is confirmed when price closes above the MA. Because many traders use the moving averages to generate xauusd signals, gold price will normally react to these levels.
A stop loss should be set just below the Moving Average xauusd Indicator. Ideally it should be set a few pips below the previous low.
Buy XAUUSD Signal - How to Trade XAUUSD Trading with Moving Average Strategy
Sell Gold Signal
If the gold price is on a downward xauusd trend and starts to retrace, then most xauusd traders might wait to sell at a better gold price when the price hits a resistance level. Traders will sometimes use the Moving Average to determine the resistance level.
A sell signal is generated when price hits the Moving Average, turns and starts moving in the downward xauusd trend direction. The xauusd signal is confirmed when price closes below the MA. Because many traders use the moving averages to generate xauusd signals, gold price will normally react to these levels.
A stop loss should be set just above the xauusd moving average indicator. Ideally it should be set a few pips above the previous high.
Sell XAUUSD Signal - How to Trade XAUUSD Trading with Moving Average Strategy
Resistance Level turns Support Level
In Gold - When a resistance level is broken it turns into support and vice versa.
This happens when the fundamentals of a xauusd trend change and consequently the direction of a xauusd. direction change is reflected by the moving average xauusd indicator, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)
Resistance Level turns Support Level - Moving Average XAUUSD Strategy Example
