Divergence MACD Classic Bullish and Bearish Gold Trading Setups

MACD Classic divergence is used as a possible sign for a gold trend reversal. Classic divergence is used when looking for an zone where xauusd price could reverse & start going in opposite direction. For this reason classic divergence is used as a low risk entry technique and also as an accurate way of exit out of a trade.

1. It is a low risk method to sell near the xauusd market top or buy near the xauusd 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 Gold trade.

There are two types:

1. Gold Trading Classic Bullish Divergence
2. Gold Trading Classic Bearish Divergence

XAUUSD Trading Classic Bullish Divergence

Classic bullish divergence occurs when price is forming 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 gold trend from down to up. This is because even though the xauusd price went lower the volume of sellers that pushed the xauusd price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downward trading trend.

Classic bearish Gold Trading Divergence Setup

Classic bearish divergence occurs when price is forming 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 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 illustrated by the Divergence MACD indicator. This indicates underlying weakness of the upwards trading trend.

Divergence MACD Hidden Bullish and Bearish Gold Trading Setups

MACD Hidden divergence is used as a possible sign for a gold trend continuation.

This divergence trade setup forms when price retraces to retest a previous high or low.

1. Gold Trading Hidden Bullish Divergence

2. Gold Trading Hidden Bearish Divergence

XAUUSD Trading Hidden Bullish Divergence

Forms when price is forming a higher low (HL), but the MACD oscillator is showing a lower low (LL).

Hidden bullish divergence occurs when there is a retracement in an upwards xauusd trend.

Divergence MACD bullish

This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an upward xauusd trend.

Gold Trading Hidden Bearish Divergence

Forms when price is forming 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 upward xauusd trend.

divergence MACD bearish

This divergence trade setup confirms that a retracement move is complete. This diverging indicates underlying strength of a downward xauusd trend.