Types of Bearish Divergence Gold Trading
Types of Divergence Gold Definition - Divergence is a xauusd trading setup used by Gold traders - divergence gold trading involves looking at a gold chart & a gold indicator - for example MACD indicator.
To find this divergence gold trading setup find two chart points which xauusd price makes a new swing high or a new swing low but the MACD indicator does not do the same, this gold signals a divergence between xauusd price & MACD technical indicator momentum.
For a divergence xauusd setup we look for 2 chart points, two highs that form an M-shape on the gold chart or 2 lows that form a WShape on the xauusd chart. Then look for the same M-shape or WShape on the Gold MACD indicator.
Example of a Divergence Gold Trade Setup:
In the xauusd chart below we spot two chart points, point A & point B (swing highs). These two chart points form an M-shape on the xauusd price chart.
Then using MACD technical indicator we check the highs made by the MACD technical indicator, these are the highs that are directly below Chart points marked A and B.
We then draw one line on the gold chart & another line on the MACD technical indicator.
Divergence Gold Signals - Types of Divergence XAUUSD Definition - Types of Divergence Gold Definition
The gold chart above shows example of hidden bearish divergence xauusd trading setup.
hat is Divergence Gold Trading Types of Divergence Gold
In order to trade divergence xauusd signal we look for the following:
- HH : Higher High - 2 highs but the last one is higher
- LH : Lower High - two highs but the last one is lower
- HL : Higher Low - 2 lows but the last one is higher
- LL : Lower Low - two lows but the last one is lower
Divergence Gold Trading Terms Definition: Different Types of Divergence Gold Trading - Types of Divergence Gold
M shapes on XAUUSD charts dealing with Gold price Highs
W Shapes on XAUUSD charts dealing with Gold price lows
Types of Bearish Divergence XAUUSD Trading - Types of Bullish Divergence Gold Trading
Types of Bearish Divergence XAUUSD Trading - Types of Bullish Divergence Gold Trading
Different Types of Divergence Gold Trading - Types of Divergence XAUUSD - Types of Bullish Divergence Gold Trading - Types of Divergence XAUUSD Definition - Types of Divergence Gold Definition
