Trade Gold Trading

MACD Classic Bullish & Bearish Divergence Trade Setup

The MACD Classic divergence pattern can act as a possible signal that a trend might change direction. MACD classic divergence is used to find areas where the gold trading price might reverse and head in the opposite direction. Therefore, the MACD classic divergence setup is used as a low-risk way to enter and accurately exit a trade.

1. This approach carries minimal risk for initiating a short sale near market peaks or entering a long position close to market troughs, resulting in comparatively small potential losses relative to the possible gains on the trade.

2. This tool serves to forecast the optimal zone for concluding a positioned trade.

There are two different types of Classic Divergence:

  1. XAU/USD Classic Bullish Divergence
  2. XAU/USD Classic Bearish Divergence

XAU/USD Classic Bullish Divergence in XAU USD Trading

Classic bullish divergence in gold appears when price forms lower lows, but the oscillator builds higher lows.

MACD Classic Bullish Gold Divergence & MACD Classic Bearish Gold Divergence - MACD Divergence Strategy

MACD Classic Bullish Divergence in Gold - MACD Divergence Strategy

Classic bullish divergence in gold trading warns of a possible change in the trend from downwards to upwards. This is because even though price headed & moved lower the volume of the sellers(bears) who moved price lower was less as shown by the MACD. This demonstrates underlying weakness of the down-ward trend.

Classic bearish divergence in XAU USD Trading

A typical bearish divergence in gold trading happens when the price shows a higher high (HH), but the oscillator tool shows a lower high (LH).

MACD Classic Bullish XAUUSD Trade Divergence & MACD Classic Bearish XAUUSD Divergence

MACD Classic Bearish Divergence in Gold - A strategy focused on MACD divergence.

Classic bearish divergence gives you a heads-up that the trend might flip from up to down. Even if the price keeps rising, if the buying volume (like what the MACD shows) is shrinking, that's a sign the uptrend is getting weaker.

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