Gold Trading with Divergence in MetaTrader 4 MT5 Download
Divergence Gold Trading Setup 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 MACDxauusd technical indicator.
To spot this xauusd divergence trading setup find 2 chart points at which xauusd price makes a new swing high or a new swing low but the MACD indicator does not, indicating a divergence between xauusd price and momentum.
To look for divergence xauusd trading setup we look for 2 chart points, 2 highs that form an M-shape on the gold chart or 2 lows that form a W-Shape on the xauusd chart. Then look for the same M-shape or WShape on the gold indicator you use to trade.
Example of a XAUUSD Trading Divergence Setup Trade Setup:
In the gold chart below we identify 2 chart points, point A and point B (swing highs). These two chart points form an M-shape on the xauusd price chart.
Then using MACD technical indicator we check the highs made by the MACD technical indicator, these are the highs that are directly below Chart points A and B.
We then draw one line on the gold chart & another line on the MACD technical indicator.
Drawing Gold Trading Divergence Lines
The gold chart above shows example of one of the four types of xauusd trading divergence setups, the one xauusd divergence trading set up above is known as hidden bearish xauusd divergence trading setup, one of the best type to trade. Types of gold trading divergences are covered in the next learn gold guide lesson.
How to spot xauusd trading divergence setups
In order to spot Gold Trading divergence signal 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 xauusd divergence trading terms:
M-shapes dealing with XAUUSD price Highs
W Shapes dealing with Gold price lows
Example of M Shapes on XAUUSD Charts
Examples of W Shapes on Gold Charts
Now that you have learned the xauusd divergence trading terms that are used to explain divergence gold trading set-up. Let us look at the two types of divergences and how to trade these gold chart setups.
There two types are:
- Classic Divergence Gold Trading Setups
- Hidden Divergence Gold Trading Setups
These 2 setups are described on following tutorials below
Classic Divergence Gold Trading Setup
Hidden Divergence Gold Trading Setup
Gold Trading with Divergence in MetaTrader 4 MT5 Download - Gold Trading with Divergence in MetaTrader 4 MT5 Gold Trading Platform PDF Free Download - MT4 Gold Platform MetaTrader 5 Divergence Gold Guide.
