Trend Definition
A xauusd trend in xauusd is the tendency of trading prices to move in a particular direction for a period of time in a general direction upward or downwards.
Trends can be analyzed using trend lines.
Trendline analysis helps traders to define the direction of the market. Trendlines connect a series of trading price highs or price lows forming a slanting trend that illustrates the general movement of price.
For an upwards sloping line this is known as an up trend - trend line plotted is known as an upwards trend line.
For a down-wards sloping line this is known as an down trend - the trend line drawn is known as an downwards trend line.
Trend Method
An upwards trend line is drawn below the up-wards sloping pattern by connecting at least two lows. This will draw a trend-line that illustrate the general direction of the market upward.
The example shown below shows how price moves when it is moving in an upwards trend. The price will move up-ward forming support regions.
Since the market moves in a zig zag manner traders normally draw a trend line which shows the general upwards trend direction.
What is an Examples of a Trend? Identifying Trends in Gold - Trend Definition
An up trend forms when price makes consecutive higher price highs and higher price lows. Each price high is higher than the previous price high - higher high, & each price low is higher than the previous price low - higher low.
Up trend lines gain more validity every time price touches but doesn't penetrate it. An up trend remains in place til this series of higher price highs and higher price lows is broken - xauusd trend-line break reversal trade signal.
Trend Method
A downward trend-line is drawn above pattern formed by consecutive lower highs, it must connect at least two highs, with recent most high being lower.
Since trading price moves downward in a zig zag manner traders normally draw a line which shows the general downward direction. In market technical analysis, this general market direction is referred to as the XAUUSD TREND by online traders. This down trend-line is drawn on a chart showing the resistance areas (bearish trend market direction).
What is an Examples of a Trend? Identifying Trends in Gold - Trend Definition
A down trend forms when the price forms a series of lower highs and lower lows. Each price high is lower than the previous price high - lower high, & each price low is lower than the previous price low - lower low therefore displaying bearish price movement.
Down trend lines gain more validity every time trading price touches but doesn't penetrate the trendline. A down trend remains the general direction til this series of lower price highs and lower price lows is broken - xauusd trend-line break reversal trade signal.
