MACD Silver Classic Bullish and Bearish Divergence

MACD Silver Classic divergence pattern is used as a possible sign for a trend reversal. MACD classic divergence is used when looking for an area where trading price could reverse and start going in the opposite 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 trade.

1. It is a low risk technique to sell near the trading market top or buy near the trading market bottoms, this makes the risk on your trades are very small relative to the potential reward.

2. It is used to predict the optimum zone at which to exit a trade.

There are 2 different types of Silver Classic Divergence:

1. Trade Classic Bullish Divergence
2. 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 indicator is forming higher lows ( HL ).

MACD Silver Classic Bullish Divergence in Silver Trading - MACD Divergence Method

Classic bullish divergence in silver trading warns of a possible change in the trend from down to up. This is because even though the price went lower the volume of sellers who pushed the trading price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downward 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 indicator is showing a lower high ( LH ).

MACD Trade Classic Bearish Divergence in Silver Trading - MACD Divergence Strategy

Classic bearish divergence warns of a possible change in xagusd trading market trend from up to down. This is because even though the price went higher the volume of buyers who pushed the price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upward trend.