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