Trade Gold Trading

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

Gold classic divergence pattern is used as a possible signal for a trend reversal. Classic divergence trade setup is used when searching for an area where the price could reverse & start going in the opposite trend direction. For this reason classic divergence setup is used as a low risk entry method and also as an accurate to exit of a trade position.

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

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

There are two different types of RSI Classic divergence setup patterns:

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

Classic Bullish Divergence Trading Setup

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

Classic Bullish and Classic Bearish Divergence

Classic Bullish Divergence - RSI Gold Strategies

Classic bullish trading divergence warns of a possible change in the market trend from downwards to upward. This is because though the price moved lower the volume of sellers that moved the price lower was less just as is illustrated by the RSI. This shows underlying weakness of the down-ward trend.

Classic bearish divergence

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

RSI Classic Bullish Divergence vs RSI Classic Bearish Divergence

Trade Classic Bearish Divergence with RSI Strategies Methods

Classic gold trading bearish divergence warns of a possible change in the trend from upwards to downward. This is because though the price moved higher the volume of buyers that moved the price higher was less like illustrated by the RSI. This shows under-lying weakness of the upwards trend.

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