RSI Metals Indicator Divergence Metals Trading Setups
Metals Trading Divergence is one of the trade setups used by Metals traders. It involves looking at a metals chart and one more metals indicator. For our example we shall use the RSI indicator.
To spot this metal trading divergence trading setup find two metals chart points at which metals price makes a new swing high or a new swing low but the RSI indicator doesn't, indicating a divergence between metals price & momentum.
RSI Metals Divergence Example:
In the metals chart below we identify two metals chart points, point A and point B (swing highs)
Then using RSI technical indicator we check the highs made by the metals trading RSI technical indicator, these are the highs that are directly below the metals trading Chart points A & B.
We then draw one line on the metals chart & another line on the RSI indicator.
RSI Divergence Metals Setup - Metals Trading Divergence using RSI Technical Indicator
How to spot metals trading divergence
In order to spot this metal divergence setup we look for the following:
HH=Higher High- 2 highs but the last one is higher
LH= Lower High- 2 highs but the last one is lower
HL=Higher Low- 2 lows but the last one is higher
LL= Lower Low- 2 lows but the last one is lower
First let us look at the illustrations of these metals trading terms
Divergence Metals Trading Terms Definition
Metals Divergence Terms Definition Examples
There are two different types of metal trading divergence setups:
- Classic Metals Trading Divergence
- Hidden Metal Trading Divergence
