Best Chart Timeframe to Trade Gold
Multiple time-frame gold trading analysis equals using 2 xauusd trading time frames to trade gold trading - a shorter xauusd trading timeframe used for trading and a longer xauusd trading time frame used to check the xauusd trend.
Since it is always good to follow the xauusd trend when xauusd, in Multiple Chart Timeframe XAUUSD Trading Analysis, the longer xauusd trading time frame gives us the direction of the long term xauusd trend.
If the long term xauusd trend direction supports the direction of the smaller xauusd trading time frame then probability of opening a profitable xauusd trade is greatly increased. This is because even if you make a mistake the long term xauusd trend will eventually save you. Also if you trade with direction of trend, then mostly you will be on the winning side - this is what this Multiple Time Frame XAUUSD Trading Analysis is all about.
Remember there is a popular saying by many traders and traders that says: 'The xauusd trend is your friend' - never go against the xauusd trend when trading.
There are four different types of xauusd traders - all these different types of xauusd traders use different xauusd time-frames to trade as shown below.
Examples of how each type of XAUUSD trader uses multiple Time Frames XAUUSD trading analysis strategy:
Multi Chart Timeframe XAUUSD Scalping
Scalpers hold on to their gold trades for only a few minutes. Scalper xauusd trader never holds on to a xauusd trade for more than 10 minutes. With the objective of making small amounts of pips as profit, 5 to 15 pips.
A Scalper using 1 min chart wants to go long, checks 5 minute chart, which looks like the one below, since 5 minute chart show xauusd trend is moving up, then decides from this xauusd analysis it is okay to open a buy gold trade transaction.
Multi Chart Timeframe XAUUSD Scalping XAUUSD Trading
Multi Chart Timeframe XAUUSD Day XAUUSD
Day xauusd traders hold on to their open gold trades for a few hours but not more than a day. With the aim to make quite a number of pips in profit: 30 - 60 pips.
XAUUSD Trading day trader trading 15 min chart wants to go long, checks 1 hour gold chart, which looks like the xauusd chart below, since 1 hour xauusd chart shows xauusd trend is moving up, then decides from this xauusd analysis it is okay to open a buy gold trade transaction.
Multi Chart Timeframe XAUUSD Day Gold - Multi Chart Timeframe XAUUSD Intraday XAUUSD
Multi Chart Timeframe XAUUSD Swing XAUUSD
Swing xauusd traders hold on to their open gold trades for a few days to a week. With the objective to make a large number of pips in profit: 100 - 250 pips.
Swing trader using 1 hour xauusd chart wants to go short, checks 4 hour gold chart, which looks like the xauusd chart example shown below, since 4 hour xauusd chart shows the xauusd trend is moving down, then decides from this xauusd analysis it is okay to open a sell gold trade transaction.
Multi Chart Timeframe XAUUSD Swing Gold - Multi Chart Timeframe XAUUSD Swing XAUUSD
Multi Chart Timeframe XAUUSD Positional XAUUSD
Position xauusd traders are traders that hold on to their gold trades for weeks or months. With the objective to make a large number of pips in profit: 300 - 800 pips.
Position xauusd trader using the daily trading chart wants to go short, checks the weekly gold chart, weekly looks like the xauusd chart example illustrated below, since weekly xauusd chart shows the xauusd trend is moving down, then decides from this xauusd analysis it is okay to open a sell gold trade transaction.
Multi Chart Timeframe XAUUSD Positional XAUUSD
How to Define A Gold Trend
Using a xauusd system that has 3 xauusd indicators - Moving Averages Crossover System, RSI Gold Indicator & MACD Gold Indicator - & uses simple rules to define the xauusd trend. The rules are:
Upwards XAUUSD Trend
Both Moving Averages Moving Up
RSI XAUUSD Indicator Above 50
MACD XAUUSD Indicator Above Centerline
Downwards Gold Trend
Both Moving Averages Moving Down
RSI XAUUSD Indicator Below 50
MACD XAUUSD Indicator Below Centerline
