Types of Bearish Gold Trading Divergence Setups
Types of XAUUSD Divergence Definition - Divergence is a xauusd trading setup used by Gold traders - Gold Trading Divergence Setups involves looking at a gold chart & a gold indicator - for example MACD indicator.
To find this Gold Trading Divergence Setups 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 Gold Trading Divergence Setups setup we look for 2 chart points, 2 highs which 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 Gold Divergence 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.
Gold Trading Divergence Setups Signals - Types of Gold Divergence Meaning - Types of Gold Divergence Definition
The gold chart above shows example of hidden bearish XAUUSD Divergence setup.
hat is Gold Trading Divergence Setups Types of Gold Divergence
In order to trade Gold Divergence Setups 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
Gold Trading Divergence Setups Terms Definition: Different Types of Gold Trading Divergence Setups - Types of Gold Divergence
M shapes on XAUUSD charts dealing with Gold price Highs
W Shapes on XAUUSD charts dealing with Gold price lows
Types of Bearish XAUUSD Divergence Setups - Types of Bullish Gold Trading Divergence Setups
Types of Bearish XAUUSD Divergence Setups - Types of Bullish Gold Trading Divergence Setups
Different Types of Gold Trading Divergence Setups - Types of XAUUSD Divergence - Types of Bearish Gold Divergence Setups - Types of Bullish Gold Trading Divergence Setups - Types of Gold Divergence Meaning - Types of Gold Divergence Definition
