RSI Divergence Gold Technical Indicator Technical Analysis

Divergence trading concept is a concept where a trader will for a difference between the xauusd price movement with the movement of a technical technical indicator. For our example we shall use the RSI technical indicator to explain divergence trading.

RSI indicator is one of the oftenly used divergence technical indicator. This gold indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

RSI Gold Analysis and RSI Trading Signals

RSI Divergence Technical Indicator

RSI Divergence Indicator

Classic RSI Bullish Gold Trading Divergence Setup

RSI classic bullish divergence forms when the price is forming lower lows ( LL ), but RSI technical indicator is making higher lows (HL).

Gold Classic Bullish Divergence - RSI Gold Divergence Definition

RSI classic bullish divergence warns of a possible change in the gold trend from down to up. This is because even though the xauusd price went lower the volume of sellers that pushed the xauusd price lower was less as shown by the RSI technical technical indicator. This indicates underlying weakness of the downwards trading trend.

Hidden RSI Bullish XAUUSD Trading Divergence Setup

Forms when the price is forming higher low ( HL ), but RSI technical indicator is making lower low (LL).

RSI hidden bullish divergence occurs when there is a retracement in an upwards xauusd trend.

Gold Hidden Bullish Divergence - RSI Gold Divergence Definition

This set up confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an upward xauusd trend.

RSI Divergence Technical Indicator

Hidden RSI Bearish Gold Trading Divergence Setup

Occurs when the price is forming lower high ( LH ), but oscillator indicator is showing a higher high (HH).

Hidden bearish divergence occurs when there is a retracement in a downward trend.

Gold Hidden Bearish Divergence - RSI Gold Divergence Definition

This set up confirms that a retracement move is complete. This divergence indicates underlying strength of a downward xauusd trend.

RSI Classic bearish XAUUSD Trading Divergence Setup

RSI classic bearish divergence occurs when price is showing higher high ( HH ), but the RSI technical indicator is forming lower high (LH).

Gold Classic Bearish Divergence - RSI Gold Divergence Definition

RSI Classic bearish divergence warns of a possible change in gold trend from up to down. This is because even though the xauusd trading price went higher the volume of buyers who pushed the xauusd price higher was less as shown by the RSI technical trading indicator. This indicates underlying weakness of the upwards trading trend.