XAUUSD How to define the trend (educational post)
Good afternoon gold gang! i hope you are all well and enjoyed your bank holiday weekend.
This weeks educational post is based on trends and how to define them. The example above is of an up trend. You can follow this example in a down trend situation also, just in reverse.
Ok so what do i look for .. on the 4hr chart .. im looking for my key levels as always. When price breaks a key level .. it will come back to retest it .. in normal market conditions. When price comes back to test it .. i am looking for price to respect that level by the way of a wick, and a close above it (in this case) .. this is where i can say the market has made a higher low and then to push on up to retest the previous higher high.
In a case of the trend braking .. a change in structure .. i would like to see price at least break the previous key level (one below it) and then i can say the trend has changed.
You can also take a trade at these levels .. after the retest. Just wait for a candle close confirmation after the liquidation wick and target the high/low.
I hope this was educational to you, its very basic but its nice to go back and drill them from time to time.
Stay tuned for market open updates guys .. until then .. please like this post and follow along for more XAUUSD updates.
tommyXAU
This weeks educational post is based on trends and how to define them. The example above is of an up trend. You can follow this example in a down trend situation also, just in reverse.
Ok so what do i look for .. on the 4hr chart .. im looking for my key levels as always. When price breaks a key level .. it will come back to retest it .. in normal market conditions. When price comes back to test it .. i am looking for price to respect that level by the way of a wick, and a close above it (in this case) .. this is where i can say the market has made a higher low and then to push on up to retest the previous higher high.
In a case of the trend braking .. a change in structure .. i would like to see price at least break the previous key level (one below it) and then i can say the trend has changed.
You can also take a trade at these levels .. after the retest. Just wait for a candle close confirmation after the liquidation wick and target the high/low.
I hope this was educational to you, its very basic but its nice to go back and drill them from time to time.
Stay tuned for market open updates guys .. until then .. please like this post and follow along for more XAUUSD updates.
tommyXAU