This research analyzes the strength of the technical analysis in predicting the
trend of the market and future price movement of XAU/USD in the Foreign
Exchange (FOREX) market. The experiment is expected to lead into several
interesting findings about the use of technical analysis and whether it can be a useful
strategy for XAU/USD trading. The research is performed in the period of 3 months
using qualitative research design, where the trend reversal patterns are discovered
using 3 technical indicators, the Bollinger Bands, Moving Average Convergence
Divergence (MACD), Relative Strength Index (RSI), and the candlestick chart as the
tool. 50 transactions were entered using the Meta Trader 4 & 5 platform and each
position was categorized based on different time frames. The results showed that
technical analysis is effective in obtaining profitability in XAU/USD trading where
62% of the positions resulted in a profit.