MACD Divergence Explained
MACD Gold Trading Divergence is one of the gold trading strategy used by online xauusd traders to analyze gold chart price movement. MACD XAUUSD Divergence involves looking at a xauusd chart & one more xauusd indicator - MACD indicator. For our this xauusd trading divergence tutorials we shall use the MACD indicator - MACD XAUUSD Divergence.
To spot this MACD gold divergence trading setup find 2 chart points at which xauusd price makes a new swing high or a new swing low but the MACD technical indicator doesn't do the same, thus indicating that there is a divergence between the xauusd price & momentum.
MACD Gold Divergence Example:
In the gold chart below we spot two chart points, chart point A & chart point B (swing highs)
Then using MACD technical indicator we check the highs made by the MACD technical indicator, these are the highs which are direct below the Chart points marked A & B.
We then draw one line on the gold chart & another line on the MACD technical indicator.
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How to trade MACD gold divergence
In order to trade MACD gold divergence set-up we look for the following setups:
HH - Higher High - 2 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 example of these gold divergence trading terms
What is MACD Gold Divergence? - Gold MACD Divergence Meaning - Gold MACD Divergence Explained
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There are two different types of gold trading MACD divergence setups:
- MACD Classic Divergence
- MACD Hidden Divergence
