MACD Gold Classic Bullish and Bearish Divergence
MACD Gold Classic divergence is used as a possible sign for a gold trend reversal. MACD classic divergence is used when looking for an area where xauusd trading price could reverse and start going in the opposite gold trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a xauusd trade.
1. It is a low risk method to sell near the xauusd market tops or buy near the xauusd market bottom, this makes the risk on your xauusd trades are very small relative to the potential reward.
2. It is used to predict the optimum point at which to exit a Gold trade.
There are two different types of Gold Classic Divergence:
- Gold Trading Classic Bullish Divergence
- Gold Trading Classic Bearish Divergence
XAUUSD Classic Bullish Divergence in XAUUSD Trading
Classic bullish divergence in gold trading occurs when price is forming lower lows ( LL ), but the oscillator indicator is forming higher lows (HL).
MACD Gold Classic Bullish Divergence in Gold Trading - MACD Divergence Strategy
Classic bullish divergence in gold trading 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 trading price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downward xauusd trend.
Classic bearish divergence in XAUUSD Trading
Classic bearish divergence in gold trading occurs when price is showing a higher high ( HH ), but the oscillator indicator is lower high (LH).
MACD Gold Trading Classic Bearish Divergence in Gold Trading - MACD Divergence Strategy
Classic bearish divergence warns of a possible change in xauusd market trend from up to down. This is because even though the xauusd trading price went higher the volume of buyers who pushed the xauusd trading price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upwards trend.
