Technical Analysis is Based on 3 Factors Common in the Market:

1. Gold Price Moves in Trends

Gold price movements follow trends. This means that after a xauusd trend has been established, the future market price movement is more likely to be in same direction as the trend than to be against it. Most xauusd strategies are based on this xauusd technical analysis concept - trend trading.

2. Price Movement Discounts Everything

Gold trading analysis only considers price movement & assumes that, at any given time, gold price reflects everything that has or could affect the instrument including even the fundamental factors. This only leaves the study of price, which is a product of the supply & demand for a particular xauusd in the market.

3. History Tends to Repeat Itself

History repeats itself mainly in terms of price movement. Repetitive nature of market movements is attributed to xauusd traders investor psychology: in other words, trade participants tend to provide a consistent reaction to the market most of the time. Gold trading analysis uses xauusd chart setups to analyze these price movements. Although these charts represent historical data they are still relevant because they illustrate chart patterns that often repeat themselves.

List of All Indicators - Technical Analysis Explained PDF - Technical Analysis PDF

Understanding this xauusd technical analysis of the market can be a valuable xauusd tool in determining the trend of any market and assisting with entry and exit levels for your gold trades.

The goal of these technical analysis methods is to help xauusd traders determine when the market is trending, & when it isn't. If the xauusd is moving in one particular direction, then we want to be on board. If the instrument is not moving in a particular direction, all you are going to do is lose money as you will get whipsawed around and this is not what we want as xauusd investors.

Unfortunately, many traders fight the trend and buy or sell in the opposite direction of a this xauusd trend direction, trying to pick a top or a xauusd market bottom, only to see the market move further in the direction of the trend.

Another common mistake traders often make is adding onto a losing xauusd position, averaging a loss. This isn't a good strategy especially in a strongly trending xauusd trading market. It is something that experienced investors never do. The trend is your friend, never go against it.

This xauusd technical analysis studies alert investors of xauusd setups and there are no certainties in financial market. Profits come from using proven xauusd strategies & methods to find a trending gold and taking trades in the same direction of the trend.

With so many xauusd investors using similar xauusd tools, technical analysis can become a self fulfilling prophecy. If many xauusd investors use the same levels as a buying point, the price goes up as everyone will make similar technical analysis moves. However, the question is always how long these xauusd moves will last?

Understanding this xauusd technical analysis methods will give the charts some meaning when you look at them and apply technical analysis. Gold trading analysis will help you understand why certain price movements occurred.

Gold charts are used with indicators to look for chart setups that have occurred in past under certain conditions. When these conditions are noted again, you can use the past xauusd chart patterns studies to make a buy or sell decision.

Learn XAUUSD Technical Analysis Lesson

• Moving Averages Technical Indicator
• Relative Strength Index Indicator
• Stochastic Oscillator Indicator
• MACD Technical Indicator
• Fibonacci Retracement Indicator
• Bollinger Bands Indicator

Most xauusd technical indicators are pictured separately from the chart usually below it. This is because these indicators often use a different scale than that of the price chart.

Some of the technical indicators are shown on the price chart itself, such as Moving Averages and Bollinger bands - these indicators are referred to as price overlays.

Explanation of these indicators is found under the tutorial: List of All Indicators - Technical Analysis PDF - Technical Analysis Examples

SUMMARY

1. Technical Analysis Relies on Defining Probabilities
2. Technical Analysis Uses History of Price Patterns
3. Technical Analysis Uses Several Analytical Tools (Indicators)
4. Technical Analysis Uses Chart Patterns

Learn Analysis Lesson

Most xauusd traders prefer technical analysis - learning the technical analysis methods also takes time to learn due to its nature which involves abiding by the technical rules.

To learn how to trade successfully, it is important that you understand the 3 strategies, outlined below:

1. XAUUSD moves will always follow a xauusd trend which can be identified by looking at the chart setups or the candlesticks charts. If any xauusd investor tells you that you can also profit from the counter-trends consistently it will not be possible because the trend is the only proven method of making money in the market.

2. The market forces will drive the prices up or down depending on supply and demand. Gold trading analysis seeks to measure the demand supply of a xauusd instrument using various xauusd technical analysis tools and indicators. The demand supply is reflected in the price action. Therefore, by simply looking at the price movements themselves you can try and predict what direction the price is likely to move towards using one or two xauusd technical indicators - technical analysis indicators like the moving average or support and resistance levels xauusd indicators.

3. The market not only shows the history of the past prices, but will also follow the trend that was in place, until its xauusd trend direction reverses. Some very important xauusd indicators used to determine these market movements are Moving Averages, MACD and Bollinger Bands Indicators.

When price starts to consolidate, which means there is no xauusd trend, you should use a different approach to analyze the trading market. You should use support and resistance levels and breakout xauusd strategies to analyze the ranging market prices.

When the market retraces, you should use chart patterns & technical indicators to analyze whether the current xauusd trend will continue or reverse.