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