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