What is Bullish Trade Divergence?
What is Divergence Gold Definition? - Divergence is a setup used by traders - divergence gold involves looking at a chart and a indicator - for example MACD indicator.
To find this divergence gold set-up find two chart points which xauusd price makes a new swing high or a new swing low but the MACD indicator does not do the same, this signals a divergence between price and MACD technical indicator momentum.
For a divergence setup we look for two points, two highs that form an M shape on the trading chart or two lows that form a W-Shape on the trading chart. Then search for the same M-shape or W-shape in the Gold MACD indicator.
Example of a Divergence Trade Setup:
In the chart below we identify two points, point A & point B (swing highs). These two chart points form an M shape on the price chart.
Then using MACD technical indicator we check the highs made by MACD indicator, these are highs which are direct below Chart points marked A & B.
We then draw one line on the chart and another line on MACD indicator.
Divergence Gold Signals - What's Divergence Explanation? - What is Divergence Gold Definition?
The chart above displays example of hidden bearish divergence trade setup.
What is Divergence Gold?
In order to trade divergence trade signal we will look for the following:
- HH : Higher High - 2 highs but last one is higher
- LH : Lower High - two highs but the last is lower
- HL : Higher Low - 2 lows but the last is higher
- LL : Lower Low : 2 lows but last one is lower
Divergence Gold Trading Terms Definition: What's Divergence Gold Trading? - What is Divergence Gold?
M shapes on charts dealing with price Highs
W-Shapes on charts dealing with price lows
What is Bearish Divergence? - What's Bullish Trade Divergence?
What is Bearish Divergence? - What's Bullish Trade Divergence?
What is Divergence Gold Trading? - What is Divergence Gold? - What is Bearish Divergence Trading? - What is Bullish Divergence Trading? - What's Divergence Explanation? - What is Divergence XAUUSD Definition?
Learn More Lessons and Topics:
- How Do You Calculate Profit and Loss in Gold?
- Accumulation/Distribution Gold Indicator Technical Analysis XAUUSD Signals
- How to Set A Sell Stop Gold Order in Gold
- Example of How to Write Gold System Rules
- How Do You Set XAU/USD Orders in MT4 Gold Charts?
- How Do You Trade MetaTrader 4 Fibonacci Expansions Trading Indicator on MT4 Platform?
- Fibonacci Expansion Strategy using Fibonacci Expansion Levels.
- How to Trade XAU/USD Charts Trends
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- How Do You Trade the Difference between Gold Stop Entry Gold Order & Stop Loss XAU USD Order?
