RSI Gold Classic Bullish Divergence and Trade Classic Bearish Divergence Trade Setups

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

• Classic trading divergence is a low risk method to sell near the top or buy near the bottom of a market trend, this makes the risk on your xauusd trades are very small relative to the potential reward.

• Classic trading divergence is used to predict the optimum point at which to exit a trade

There are two different types of RSI Classic divergence trading setups:

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

Classic XAUUSD Bullish Divergence

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

Classic XAUUSD Bullish Divergence - RSI Gold Strategies

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

Classic XAUUSD bearish divergence

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

Trade Classic Bearish Divergence Gold Trading with RSI Indicator Strategies Methods

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