What's a Downtrend?
Down trend is when price of a chart is moving lower and lower. Prices in general close lower than where they opened.
How to Trade Downward XAUUSD Trend: traders use the downwards trend direction to open sell xauusd trades
Down-wards Trend
Down-wards XAUUSD Trend - Drawn using a downward trend line
What's a Downward XAUUSD Trend? - What's Downtrend?
The MetaTrader 4 platform provides charting tools for drawing trends on charts. To draw trend on charts traders can use trend line drawing tool provided in MT4 software that is illustrated below.
Meaning of a Downwards XAUUSD Trend and Meaning of XAUUSD Down
To draw a downward trend line on MetaTrader 4 platform and choose point A where you want to begin drawing & then point B where you want the it to touch. You also can right click in trend line and on the properties option choose option to extend ray by checking the 'ray check box', if you do not want to extend it, then untick this option in your xauusd software.
The trend is your best friend. Is a popular saying among traders because you never should trade against it. This is the most reliable xauusd method to trade XAUUSD because once trading prices begin to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw & Define XAUUSD Trend
Use trading candle charts
- The areas used to draw are along the highs of price bars in a falling downward market. A downward bearish trend move is defined by lower highs and lower lows.
- The points used to draw the trend lines are extremes points - the high or the low price. These price extremes are critical because a close beyond the extremes tells traders that the market trend of gold might be changing. This is an exit trade signal.
- The more often a downward trend is touched by price but it isn't broken, then the more powerful the downward trend signal.
