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 2 chart points which xauusd gold price forms a new swing high or new swing low but the MACD indicator doesn't do the same, this signals a divergence setup between price & MACD indicator momentum.
For a divergence setup we look for two points, 2 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 Trading 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 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 is 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 setup signal we will look for the following:
- HH : Higher High - 2 highs but last one is higher
- LH : Lower High - 2 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 is 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 Trade? - What is Bullish Divergence Trade? - What's Divergence Explanation? - What is Divergence XAU/USD Definition?
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