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