There are hundreds of reliable assets available for you to trade in the financial world, but there is one precious metal variety that is particularly noteworthy and has been one of the most popular choices for traders at all levels for decades, and that is gold (XAU).
Gold has always held a very important position in business and is also a safe haven asset. Even large investment institutions have always relied on gold to avoid risks. In today's rapidly changing era, the popularity of gold is once again on the rise, and traders realize that opportunities are just around the corner.
If XAU's next breakthrough is similar to the past, identifying signs of a breakthrough early and trading at the best time may lead to a complete victory. When news begins to extensively report on gold related news, the best entry point for gold has already disappeared, but technical traders can predict reversals, rebounds, and crashes early on before the media receives any news. Before the next XAU transaction, please consider using the following indicators.
The three indicators that technical analysis must know when trading gold are as follows.
The moving average is a super popular indicator for predicting gold and other assets. If you draw a moving average on a chart and look back at the situation from the previous month, you will find where the moving averages intersect. Whenever these lines intersect, XAU undergoes a reversal, and the optimal entry point is located in the early stages of the reversal. Please immediately draw a moving average on the chart to see if now is a good time to trade gold.
On the XAU chart, check if the price has touched outside the Bollinger Bands. Touching the lower band of the Bollinger Bands indicates a weakening trend, and even the price is about to rise. Touching the upper band of the Bollinger Bands indicates that the price will reverse downward.
After drawing the Fibonacci horizontal line, please pay close attention to the main horizontal line of 61.8% (0.618). It is called the golden ratio or golden ratio line. The assumption of technical traders is that if the retracement or price drop reaches this level and then slows down, the trend is likely to return to its original direction.
In addition to the mathematical characteristics of these three popular indicators, it also involves a self fulfilling prophecy. If the above indicators predict that gold will rise, countless traders will start buying gold, and the positive trading volume will lead to an increase in demand, thereby driving up prices.
Traders who quickly detect signals can accurately predict price trends and earn maximum profits. Therefore, it is recommended that traders check XAU charts more frequently.
Another clever strategy for gold traders is to examine the highs and lows of the past few weeks and compare them with the highs and lows of the past two years. If the price remains low in both the short and long term, it indicates that an excellent trading opportunity is brewing.
Finally, as global currency and economic uncertainty continues to increase, it is not difficult to imagine that large investors will refocus their attention on gold, the oldest safe haven asset. Before the last economic recession in 2008/2009, gold briefly fell, but then continued to rise for three years as housing prices and stocks soared. If this situation occurs again, please keep your Exness account active and well funded, which may be the best thing you can do this year. Please prepare for the next golden trading opportunity This timing may have already surfaced.
