RSI Gold Reverse Bullish Divergence and Reverse Bearish Divergence Gold Trading Setups

Gold reverse divergence is used as a possible sign for a gold trend reversal. Reverse gold divergence setup is used when looking for an area where xauusd price could reverse and start moving in the opposite direction. For this reason gold reverse divergence is used as a low risk entry method and also as an accurate way of exit out of a xauusd trade transaction.

• Reverse gold divergence is a low risk method to sell near the top or buy near the bottom of a gold market trend, this makes the risk on your xauusd trades are very small relative to the potential reward.

• Reverse gold divergence is used to predict the optimum point at which to exit a gold trading trade

There are two different types of RSI Reverse gold divergence trading setups:

1. Reverse Bullish Divergence Gold Trading Setup
2. Reverse Bearish Divergence Gold Trading Setup

Reverse XAUUSD Bullish Divergence

Reverse gold bullish divergence occurs when price is forming lower lows (LL), but the RSI indicator is making higher lows (HL).

Reverse XAUUSD Bullish Divergence - What is RSI Reverse Divergence?

Reverse RSI bullish gold divergence warns of a possible reversal in the gold market trend from down to up. This is because even though the xauusd price went lower the volume of sellers that pushed the xauusd prices lower was less as indicated by the RSI indicator. This signals underlying weakness of the downward xauusd trend.

Reverse XAUUSD bearish divergence

Reverse RSI gold bearish divergence occurs when price is forming a higher high (HH), but the RSI indicator is lower high (LH).

Reverse Bearish Divergence Gold Trading - What is RSI Reverse Gold Divergence? - RSI Reverse Bullish Divergence and RSI Reverse Bearish Divergence

RSI reverse gold bearish divergence warns of a possible reversal in the gold trend from up to down. This is because even though the xauusd price went higher the volume of buyers who pushed the xauusd price higher was less as indicated by the RSI indicator. This signals underlying weakness of the upwards trend.