RSI Divergence Gold Trading Indicator Technical Analysis

Divergence trading has two setups and these are bullish & bearish divergence set-ups. For each of these gold trading setups there is also classic divergence and hidden divergence, these gold trading setups are explained below.

RSI indicator is one of the oftenly used divergence technical indicator. This gold indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

RSI XAUUSD Divergence Example

RSI XAUUSD Indicator Divergence Example

RSI Divergence Indicator

Classic RSI Bullish XAUUSD Trading Divergence Setup

RSI classic bullish divergence forms when the price is forming lower lows ( LL ), but RSI technical indicator is making higher lows (HL).

Gold Classic Bullish Divergence - RSI Gold Divergence Examples

RSI classic bullish divergence setup 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 shown by the RSI technical technical indicator. This indicates underlying weakness of the downwards trading trend.

Hidden RSI Bullish Gold Trading Divergence Setup

Forms when the price is forming higher low ( HL ), but RSI technical indicator is making lower low (LL).

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

Gold Hidden Bullish Divergence - RSI Gold Divergence Examples

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

RSI Divergence Technical Indicator

Hidden RSI Bearish XAUUSD Trading Divergence Setup

Occurs when the price is forming lower high ( LH ), but oscillator indicator is showing a higher high (HH).

Hidden bearish divergence set-up forms when there is a retracement in a downwards trend.

Gold Hidden Bearish Divergence - RSI Gold Divergence Examples

This divergence example setup confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards xauusd trend.

RSI Classic bearish XAUUSD Trading Divergence Setup

RSI classic bearish divergence occurs when price is showing higher high ( HH ), but the RSI technical indicator is forming lower high (LH).

Gold Classic Bearish Divergence - RSI Gold Divergence Examples

RSI Classic bearish divergence warns of a possible change in gold trend from up to down. This is because even though the xauusd trading price went higher the volume of buyers who pushed the xauusd price higher was less as shown by the RSI technical trading indicator. This indicates underlying weakness of the upwards trading trend.