Divergence MACD Classic Bullish and Bearish Metals Trading Setups
MACD Classic divergence is used as a possible sign for a metals trend reversal. Classic divergence is used when looking for an zone where metals price could reverse and begin going in opposite direction. For this reason classic divergence is used as a low risk entry technique & also as an accurate way of exit out of a trade.
1. It is a low risk technique to sell near the metal market top or buy near the metal market bottoms, this makes the risk on your trades are very small relative to the potential reward.
2. It's used to predict the optimum point at which to exit a Metals trade.
There are two types:
- Metals Classic Bullish Divergence
- Metals Classic Bearish Divergence
Metals Classic Bullish Divergence
Classic bullish divergence occurs when metals price is making lower lows ( LL ), but the divergence macd indicator is making higher lows (HL).
Divergence MACD Classic Bullish
Classic bullish divergence warns of a possible change in the metals trend from down to up. This is because even though the metals price went lower the volume of sellers who pushed the metals price lower was less as illustrated by the MACD indicator. This is an technical indicator of the underlying weakness of the downward trend.
Classic bearish Metal Trading Divergence Setup
Classic bearish divergence occurs when metals price is making a higher high ( HH ), but the divergence macd indicator is lower high (LH).
Divergence MACD Classic Bearish
Classic bearish divergence warns of a possible change in metals trend from up to down. This is because even though the metals price went higher the volume of buyers who pushed the metals price higher was less as illustrated by the Divergence MACD indicator. This is an technical indicator of the underlying weakness of the upward trend.
Divergence MACD Hidden Bullish and Bearish Metals Trading Setups
MACD Hidden divergence is used as a possible sign for a metals trend continuation.
This divergence trade setup occurs when metals price retraces to retest a previous high or low.
1. Metals Hidden Bullish Divergence
2. Metals Hidden Bearish Divergence
Metals Hidden Bullish Divergence
Forms when metals price is making a higher low ( HL ), but MACD oscillator technical indicator is showing lower low (LL).
Hidden bullish divergence occurs when there is a retracement in an upward metal trend.
divergence MACD bullish
This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an upward metal trend.
Metal Hidden Bearish Divergence
Forms when metals price is making a lower high ( LH ), but the MACD oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in an upwards metal trend.
divergence MACD bearish
This divergence trade set-up confirms that a retracement move is complete. This diverging indicates underlying strength of a downward metal trend.
