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MACD Gold Classic Bullish and Bearish Divergence

MACD Gold Classic divergence is used as a possible sign for a gold trading trend reversal. MACD classic divergence is used when looking for an area where gold price could reverse and start going in the opposite gold trading trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a gold trading trade.

 

1. It is a low risk method to sell near the gold trading market top or buy near the gold trading market bottom, this makes the risk on your gold trading trades are very small relative to the potential reward.

2. It is used to predict the optimum point at which to exit a Gold trade

 

There are two types of Gold Classic Divergence:

  1. Classic Bullish Divergence
  2. Classic Bearish Divergence

 

Classic Bullish Divergence in Gold Trading

Classic bullish divergence in gold trading occurs when gold price is making lower lows (LL), but the oscillator is making higher lows (HL).

MACD Classic Bullish Divergence in Gold Trading - MACD Divergence Gold Trading Strategy

MACD Classic Bullish Divergence in Gold Trading - MACD Divergence Gold Trading Strategy


Classic bullish divergence in gold trading warns of a possible change in the gold trading trend from down to up. This is because even though the gold price went lower the volume of sellers that pushed the gold price lower was less as illustrated by the MACD gold trading indicator. This indicates underlying weakness of the downward gold trading market trend.

 

Classic bearish divergence in Gold Trading

Classic bearish divergence in gold trading occurs when gold price is making a higher high (HH), but the oscillator is lower high (LH).

MACD Classic Bearish Divergence in Gold Trading - MACD Divergence Gold Trading Strategy

MACD Classic Bearish Divergence in Gold Trading - MACD Divergence Gold Trading Strategy


Classic bearish divergence warns of a possible change in the gold trading market gold trading trend from up to down. This is because even though the gold price went higher the volume of buyers that pushed the gold price higher was less as illustrated by the MACD gold trading indicator. This indicates underlying weakness of the upward gold trading market trend.

 

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