Divergence Gold Indicators
The best divergence indicator is the RSI indicator, traders can use this indicator to check divergence when trading gold.
The two types of divergence -bullish & bearish divergence are explained below.
RSI Hidden Bullish and Bearish Divergence Gold Setups
Hidden divergence pattern is used as a possible sign for a trend continuation. Hidden divergence occurs when price retraces to retest a previous high or low.
Hidden RSI Bullish Divergence Trading Setup
Forms when price is forming a higher low (HL), but the oscillator trading is showing a lower low (LL).
Hidden bullish divergence in gold trading forms when there is a price retracement in an upwards trend.
Gold Hidden Bullish Divergence - best divergence technical indicator
This setup confirms that a pull-back is over. This divergence shows under-lying strength of an upwards trend.
Hidden RSI Bearish XAUUSD Divergence Setup
Forms when the price is forming a lower high ( LH ), but the RSI is showing a higher high ( HH ).
Hidden bearish divergence in gold trading occurs when there is a retracement in a downward trend.
Gold Hidden Bearish Divergence - best divergence technical indicator
This divergence confirms that a pullback is over. This divergence indicates strength of a downward trend.
Study More Lessons and Courses:
- What is the Interpretation of XAU USD Charts?
- How Do You Place Stop Loss XAUUSD Order & Take Profit Order on MT5 Platform?
- Gold Key Concepts Described
- MT4 Gold Indicators Insert Menu on MT4 Insert Menu Options
- Gold Take Profit Order Setting on Mobile Trading App
- How Do You Register Gold Account with a MetaTrader 4 Gold Broker?
- How Stochastic Oscillator Works in Trending Gold Markets, Range Gold Markets
- What is Bullish Gold Divergence Trading?
- Which is the Best XAU/USD Leverage for $500 XAU USD?
- How Do You Save MT4 Profile of MetaTrader 4 Gold Charts in MT4 Platform?
