RSI Gold Indicator Divergence Gold Trading Setups
Gold Divergence is one of the trade setups used by Gold traders. It involves looking at a gold chart and one more gold indicator. For our example we shall use the RSI gold indicator.
To spot this xauusd divergence trading setup find two gold chart points at which xauusd price makes a new swing high or a new swing low but the RSI gold indicator does not, indicating a divergence between xauusd price and momentum.
RSI Gold Divergence Example:
In the gold chart below we identify two gold chart points, point A and point B (swing highs)
Then using RSI gold indicator we check the highs made by the gold trading RSI indicator, these are the highs that are directly below the gold Chart points A and B.
We then draw one line on the gold chart and another line on the RSI gold indicator.
RSI Divergence Gold Trading Setup - Gold Trading Divergence using RSI XAUUSD Indicator
How to spot gold trading divergence
In order to spot this xauusd 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 Trading Divergence Terms Definition Examples
There are two different types of xauusd trading divergence setups:
- Classic Divergence
- Hidden Divergence