Best Chart Timeframe to Trade Gold
Multiple time-frame gold trading analysis equals using 2 xauusd chart time-frames to trade gold trading - a shorter xauusd chart time-frame used for trading and a longer xauusd chart 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 chart 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 chart 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 chart timeframes to trade as shown below.
Examples of how each type of XAUUSD trader uses multiple Gold chart Time-frames analysis strategy:
Multi Chart Timeframe 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 gold trading analysis it's ok to open a buy gold trade transaction.
Multi Chart Timeframe Scalping XAUUSD Trading
Multi Chart Timeframe Day XAUUSD Trading
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 gold trading analysis it's ok to open a buy gold trade transaction.
Multi Chart Timeframe Day XAUUSD Trading - Multi Chart Timeframe Intraday XAUUSD Trading
Multi Chart Timeframe Swing Trading 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 gold trading analysis it's ok to open a sell gold trade transaction.
Multi Chart Timeframe Swing XAUUSD Trading - Multi Chart Timeframe Swing XAUUSD Trading
Multi Chart Timeframe Positional Trading 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 gold trading analysis it's ok to open a sell gold trade transaction.
Multi Chart Timeframe Positional XAUUSD Trading
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
