RSI Silver Indicator Divergence Trade Setups

Silver Divergence is one of the trade setups used by traders. It involves looking at a chart & one more indicator. For our example we shall use the RSI indicator.

To spot this divergence trading setup find two chart points at which price makes a new swing high or a new swing low but the RSI indicator doesn't, indicating a divergence between price and momentum.

RSI Silver Divergence Example:

In the chart below we spot two chart points, point A and point B (swing highs)

Then using RSI indicator we check the highs made by the silver trading RSI indicator, these are highs that are directly below the silver trading Chart points A and B.

We then draw one line on the chart and another line on the RSI indicator.

RSI Divergence Silver Setup - Divergence Silver Trading using RSI Indicator

How to spot silver trading divergence

In order to spot this xagusd trading divergence setup we look for the following:

HH=Higher High- two highs but the last one is higher

LH= Lower High- 2 highs but the last one is lower

HL=Higher Low- two lows but the last one is higher

LL= Lower Low- 2 lows but the last one is lower

First let us look at the illustrations of these silver trading terms

Divergence Silver Trading Terms Definition

Divergence Silver Trading Terms Definition Examples

There are 2 different types of xagusd trading divergence setups:

1. Classic Silver Trading Divergence
2. Hidden XAGUSD Trading Divergence