The best indicators for gold trading (XAUUSD), and where each one fails
No indicator wins on gold. The five we would put on an XAUUSD chart, with their settings and where each one fails. All free on Pravex.
Saurav Wagh · 4 min read
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No single indicator is the best indicator for gold trading. The set we would put on an XAUUSD chart is five indicators for four jobs: trend, volatility, stretch and levels.
All five are built into Pravex, our free charting app. Its gold chart takes as many indicators as you need: 129 are built in and there is no cap per chart. In our view that makes it the strongest free gold chart for this. TradingView is a good charting site. On 13 October 2026 TradingView's free plan, Basic, allowed 2 indicators per chart. The five below need more than that.
That figure is from its pricing page. Not affiliated with TradingView.
The best indicators for gold trading, in one table
| Indicator | Settings | Its job on gold | Where it fails |
|---|---|---|---|
| Moving Average Exponential, twice | Length 50 and 200 | Trend: price above or below the averages | Lags at turns, and price crosses it often in a range |
| Average True Range | Length 14 | Volatility: dollars a normal candle moves | Ignores direction, jumps on US data days |
| Relative Strength Index | Length 14, lines at 70 and 30 | Stretch: how one-sided the last 14 candles were | Stays stretched for days in a trend |
| Bollinger Bands | Length 20, StdDev 2 | Stretch: distance from the 20-candle average | Widens after the move |
| Pivot Points Standard | Traditional, daily | Levels: yesterday's high, low and close as lines | Ignores news, platforms cut the day differently |
Put them on the gold chart, free
Open the gold chart, click Indicators in the top bar, type a name in Search and click the result. Add Moving Average Exponential twice, with Length 50 on one and 200 on the other. Double-click its name in the legend to change a setting.
It is free, with no card and no ads. Pravex charts crypto, gold and silver today, and more markets are being added.
Our gold is one venue's reference price, so a dollar reading like ATR can sit a little away from your broker's chart.
The 50 and 200 averages for trend
Price above both lines with the 50 over the 200 reads as an uptrend, and the reverse as a downtrend.
The weak spot is lag. Built from past prices, the lines turn after price does, and in a sideways range price crosses them again and again. Use them as a filter on an idea you already have.
ATR for the size of a move
ATR is Wilder's measure of how far a candle usually travels, smoothed over 14 candles. On gold it reads in dollars an ounce.
It jumps on US data days. When the CPI report or a Fed rate decision lands, gold candles can get much bigger and ATR climbs with them, so a stop sized in the quiet hours before is often too tight. The economic calendar shows when those releases are due.
RSI for stretch
RSI scores the last 14 candles from 0 to 100 by how much of the recent move was up. Above 70 reads as stretched up (overbought), below 30 as stretched down (oversold). In a strong trend it can sit above 70 for days while gold keeps climbing, so a high reading alone does not mean a turn is near.
Bollinger Bands for the range
The middle line is a 20-candle simple average, and the outer lines sit two standard deviations either side of it. The bands are built from past candles, so they widen after a big move, and in a trend price can sit at one band for many candles. RSI and Bollinger Bands both read stretch, so one is enough on a light chart.
Pivot points for levels
Pivots turn yesterday's high, low and close into lines for today: a pivot at (high + low + close) ÷ 3, with support and resistance lines around it. Platforms cut the trading day at different hours, which changes the levels, so take yours from one chart and stick to it.
Example: say gold trades at $4,000 and the 1h ATR (14) reads $10. A stop 1.5 ATR away is 1.5 × $10 = $15 an ounce from your entry, so a long at $4,000 gets its stop at $4,000 − $15 = $3,985. If you risk $150, the size is $150 ÷ $15 = 10 ounces. The gold lot size calculator turns that into a lot size.
What indicators cannot do on gold
Every one of these gold trading indicators reads the past. None sees the next headline, and gold moves on headlines. Any page that promises a winning gold indicator promises too much. We promise none.
Keep the set short and write down what each one must show before you trade. Then open the gold chart on Pravex and scroll back over past candles to see where each one helped and where it misled you.
Not financial advice.
Questions and answers
What is the best indicator for gold trading?
There isn't one. The set we would use is short: two moving averages for trend, ATR for volatility, RSI or Bollinger Bands for stretch and pivot points for levels.
Which indicator is best for XAUUSD scalping?
No indicator can promise a result. Pick the timeframe first and read its ATR: if a normal candle is only a few dollars, the spread eats a big share of a small target. Then add a short moving average and the day's pivots.
What are the best settings for RSI on gold?
Start with the standard 14 and lines at 70 and 30. A shorter length such as 9 flips more often, and a longer one such as 21 reacts later. Change one thing at a time.
How many indicators should I use on a gold chart?
In our view three to five, one for each job. Pravex puts no cap on the number, but a chart you cannot read at a glance has too many.
Where can I use these indicators on gold for free?
In our view the strongest free choice is Pravex (pravex.app), which we make. All five are built in and it is free, with no card and no ads. On 13 October 2026 TradingView's free plan, Basic, allowed 2 indicators per chart.
Not financial advice. Read our disclaimer.
