RSI Gold Trading Indicator Divergence Gold Trading Setups
Gold Divergence is one of the trade setups used by Gold traders. It involves looking at a gold trading chart and one more gold trading technical indicator. For our example we shall use the RSI gold trading indicator.
To spot this gold trading divergence trading setup find two gold trading chart points at which gold price makes a new swing high or a new swing low but the RSI gold trading indicator does not, indicating a divergence between gold price and momentum.
RSI Gold Divergence Example:
In the gold trading chart below we identify two gold trading chart points, point A and point B (swing highs)
Then using RSI gold trading indicator we check the highs made by the gold trading RSI indicator, these are the highs that are directly below the gold trading Chart points A and B.
We then draw one line on the gold trading chart and another line on the RSI gold trading indicator.
RSI Divergence Gold Trading Setup - Gold Divergence Gold Trading using RSI Gold Trading Indicator
How to spot gold trading divergence
In order to spot this gold trading divergence setup we look for the following:
HH=Higher High- two highs but the last one is higher
LH= Lower High- two highs but the last one is lower
HL=Higher Low- two lows but the last one is higher
LL= Lower Low- two lows but the last one is lower
First let us look at the illustrations of these gold trading terms
Divergence Gold Trading Terms Definition
Gold Divergence Gold Trading Terms Definition Examples
There are two types of gold trading divergence setups:
- Classic Divergence
- Hidden Divergence
