XAUUSD Indicators For Setting Stop losses In XAUUSD
Some xauusd indicators are used for setting stop losses taking away the need for gold traders to perform complex calculations on where to place these stop loss xauusd orders.
A xauusd trading systems trader can also place a stop loss xauusd order according to these xauusd technical indicators. Some xauusd technical indicators use mathematical equations to calculate where the order stop loss xauusd order should be set so as to provide an optimal exit. These xauusd indicators can be used as the basis for setting stop loss xauusd orders. These xauusd indicators follow gold price action of a xauusd instrument closely and define the boundaries which the xauusd prices should move along in. When the gold price moves outside these boundaries it is therefore best to close the open gold trades because gold price stops moving in that particular direction.
Some of the Technical xauusd indicators that can be used to set stop loss xauusd orders are:
Parabolic SAR XAUUSD Indicator
Parabolic SAR is like an Automatic Stop Loss XAUUSD Order And Take Profit XAUUSD Order Indicator used to set a trailing gold price stop loss
The Parabolic SAR provides excellent exit points.
In an upward xauusd trend, you should close long positions when the gold price falls below the Parabolic SAR xauusd indicator
In a downward xauusd trend, you should close short positions when the gold price rises above the Parabolic SAR.
If you are long then the gold price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the gold price is moving. The amount the Parabolic SAR indicator moves up depends on the amount that xauusd prices moves.
Parabolic SAR - Gold Trading Indicator - Automatic Stop Loss XAUUSD Order And Take Profit XAUUSD Order Indicator
Picture of parabolic SAR and how it is used
Bollinger Bands XAUUSD Indicator
Bollinger bands indicator use standard deviation as a measure of volatility. Since standard deviation is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands xauusd indicator consist of 3 bands designed to encompass the majority of a xauusd instruments gold price action. The middle band is a basis for the intermediate term xauusd trend, typically it is a 20-period simple moving average, which also serves as the base for the upper and lower bands. The upper band's and lower band's distance from the middle band is determined by volatility.
Since these Bollinger bands are used to encompass the gold price action, the bands can be used to set stop losses just outside the area of the bands.
Bollinger Bands Setting Stop Loss XAUUSD Order Level - Bollinger Bands XAUUSD Technical indicator
Gold Fibonacci Retracement Levels Indicator
Fibonacci retracement levels provide areas of support and resistance, these areas can be used to set stop loss levels.
Gold Fibonacci Retracement level 61.8 % is the most commonly used level for setting stop losses. A stop loss xauusd order should be set just below 61.8 % Fibonacci retracement level
The 61.8 % Fibonacci retracement level is used to set these orders since its rarely hit.
Fibonacci Indicator Stop Loss XAUUSD Order Setting at 61.8 % Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Gold Indicator
Support and Resistance Levels Lines
Support and resistance levels can be used to set stop loss levels where the stop loss xauusd orders are set just above or below the support or resistance.
- Buy XAUUSD Trade - Stop Loss XAUUSD Order set a few pips below the support
Buy XAUUSD Trade - Stop Loss XAUUSD Order set a few pips below the support
- Sell XAUUSD Trade - Stop Loss XAUUSD Order set a few pips above the resistance
Sell XAUUSD Trade - Stop Loss XAUUSD Order set a few pips above the resistance