Gold with Divergence in MT4 MetaTrader 5 Download
Divergence Gold Setup is one of the Gold trade setups used by traders. It involves looking at a chart and one more technical indicator. For our example we shall use the MACDxauusd indicator.
To spot this xauusd divergence setup find 2 chart points at which xauusd gold price forms a new swing high or new swing low but the MACD indicator does not, indicating a divergence setup between price & momentum.
To look for divergence setup we look for 2 chart points, 2 highs that form an M-shape on the chart or 2 lows that form a W-Shape on the chart. Then look for the same M shape or W shape in the technical indicator you use to trade.
Example of a Trade Divergence Setup:
In the chart below we identify 2 points, point A & point B (swing highs). These two chart points form an M-Shape on the price chart.
Then using MACD indicator we check the highs made by MACD technical technical indicator, these are the highs that are directly below Chart points A and B.
We then plot & draw one line on the chart & another line on the MACD technical indicator.
Drawing Gold Trade Divergence Lines
The chart above shows exemplification of one of the 4 types of trade divergence setups, the one divergence set up above is known as hidden bearish xauusd gold divergence setup, one of the best type to trade. Types of gold trading divergences are explained in the next learn gold guide lesson.
How to identify divergence setups
In order to identify divergence trade setup we check for the following:
- HH = Higher High - 2 highs but the last is higher
- LH = Lower High - 2 highs but last one is lower
- HL=Higher Low : two lows but the last is higher
- LL = Lower Low - 2 lows but the last is lower
First let us look at the exemplifications of these divergence terms:
M shapes dealing with price Highs
W Shapes dealing with the price lows
Example of M shapes on Charts
Examples of W-Shapes on Charts
Now that you have learned the divergence terms that are used to explain divergence gold set-up. Let us look at the two types of divergences & how to trade these chart setups.
There two types are:
- Classic Divergence Gold Trade Setups
- Hidden Divergence Gold Trade Setups
These two setups are explained on following tutorial guides below
Gold with Divergence in MetaTrader 4 MetaTrader 5 Download - Gold with Divergence in MT4 MT5 Platform Software PDF Download - MT4 Software MetaTrader 5 Divergence Gold Guide.
Get More Topics & Courses:
- How Do You Trade Head and Shoulders Pattern?
- How to Trade Fibonacci Expansion Levels Trade Gold Strategy
- Linear Regression Acceleration Gold Indicator
- How to Trade Hidden Bullish and Hidden Bearish Trading Divergence on XAUUSD Charts
- What is Free XAUUSD Demo Trading Account for Beginners?
- How Do You Trade Fib Expansion Levels in XAUUSD Trading?
- Gold Market Tops Reversal & Market Bottom Trend Reversal Using Stochastics Oscillator
