Retracement on Upwards and Downward Trend

What's a Price Retracement in XAUUSD?

The price of a instrument doesn't move up-ward or down-ward in a straight line. Instead the price moves up-ward or down-ward in a zig zag pattern setup called a trend - in this pattern the price moves up-ward in a trend then it pulls back before it resumes the trend direction - in a downward trend the price moves downward in trend direction & then retraces before resuming the trend direction.

What's a retracement? A trading price retracement is a pullback of price before the market resumes original xauusd trend movement.

Example of Zigzag Price Movement: The example shown below shows price moving up in a zig zag pattern setup showing price trend & price pullback.

The example shown below shows movement in an upward market and price pullback.

What's a Retracement? - What is Retracement? - Price Retracement Explained with Example

What is Retracement Trading in XAUUSD?

1-2: Price Moves Up - Trend Direction

2-3: Price Retracement

3-4: Price Moves Up - Trend Direction

4-5: Price Retracement

5-6: Price Moves Up - Trend Direction

The pullback of trading price is illustrated on the above examples - this represents a retracement in an upwards trend.