Trade Forex Trading

What Happens in Gold after a Chart Setup Break-out?

A setup Break-out is a signal that's generated once a consolidation chart pattern is complete & price break out of this consolidation pattern and starts to move in one direction forming a market trend.

What Happens in XAUUSD after a Bullish Gold Setup Break-out?

The price can break out to the upside and starts heading in the upward direction hence forming a bullish upwards trend. After the market breaks-out in the upward direction the market will continue to head in that specific direction for some time. Once consolidation pattern upwards side break out is confirmed the prices on the chart will remain bullish.

What Happens in XAUUSD after a Bearish Gold Setup Break-out?

The price can break out to the downside and starts heading in the downward direction hence forming a bearish downwards trend. After the market breaks out in the downward direction the market will continue to head in that specific direction for some time. Once consolidation pattern downwards side break out is confirmed the prices on the chart will remain bearish.

A trader should wait til the consolidation setup is confirmed by trading prices breaking out of this consolidation setup and heading in one specific direction before opening any trade - sell xauusd trade or buy trade.