MACD Gold Classic Bullish and Bearish Divergence

MACD Gold Classic divergence is used as a possible sign for a gold trend reversal. MACD classic divergence is used when looking for an area where xauusd price could reverse and start going in the opposite gold 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 trade.

1. It is a low risk method to sell near the xauusd market top or buy near the xauusd market bottom, this makes the risk on your xauusd 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 different types of Gold Classic Divergence:

1. Gold Trading Classic Bullish Divergence
2. Gold Trading Classic Bearish Divergence

XAUUSD Trading Classic Bullish Divergence in XAUUSD Trading

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

MACD Gold Trading 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 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 illustrated by the MACD gold indicator. This indicates underlying weakness of the downward xauusd trend.

Classic bearish divergence in XAUUSD Trading

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

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

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