Stochastic Oscillator Bullish Silver Divergence and Bearish Divergence Silver Trading

Divergence silver trading is one of the silver trading signals that can be generated when using the stochastic oscillator xagusd technical indicator.

Divergence silver trading is a signal that a rally or retracement is losing steam and is likely to reverse. It means that the last buyers or the last sellers are pushing the xagusd price in one way while the majority of other silver traders have stopped trading in that direction and are cautious of a xagusd price correction or retracement.

There are 4 types of xagusd trading divergence trading setups

Example 1: Classic XAGUSD Bullish Divergence

A Silver Trading Classic Bullish Divergence in the stochastic oscillator indicator and the xagusd price is followed by a rise in xagusd price.

Stochastic Oscillator Silver Indicator Classic Silver Bullish Divergence

When the xagusd price is making new lows the Stochastic indicator is not moving past its previous lows it is an indication that the downward silver trend is about to reverse and a bullish silver trading rally is likely to occur.

In the xagusd trading example above the xagusd price set a new low but it was not coupled with a new low in the measure of Stochastic oscillator silver indicator, when xagusd price formed a new low then the stochastic silver indicator should have followed suit, but the stochastic indicator did not therefore the silver trading classic divergence trading setup.

Silver classic divergence trading setup is even stronger because there is combination of a divergence silver trade setup and then followed by a rise above the 20% indicator level. This combines the Overbought and Oversold levels with this xagusd trading divergence trading setup.

Example 2: Classic XAGUSD Bearish Divergence

A Classic Silver Bearish Divergence trading setup in the stochastic oscillator silver indicator and the xagusd price is followed by a drop in xagusd price.

Stochastic Oscillator Silver Indicator Classic Silver Bearish Divergence

When xagusd price is making new highs but the Stochastic oscillator silver indicator is not moving beyond its previous high it is an indication the upward silver trend will reverse and that a silver trading bearish divergence trade set-up will follow.

This classic silver trading bearish divergence trade setup is even stronger because there is a combination of a xagusd divergence with a dip below the overbought 80 level.

Example 3: Hidden XAGUSD Bullish Divergence

Hidden Silver Bullish Divergence trade setup signifies a retracement in an upward silver trend. This silver trading hidden divergence trading setup is the best type of xagusd trading divergence setup to trade, because you are not trading a xagusd price reversal, but you're trading within the direction of the Silver trend.

Stochastic Oscillator Silver Indicator Hidden Silver Bullish Divergence

Even though, the stochastic oscillator silver indicator made a lower low the xagusd price low was higher than the previous low (higher low). This means that even though the silver sellers made a good attempt to push xagusd price down as indicated by the stochastic indicator, this was not reflected on the xagusd price, and the xagusd price did not make a new low. This is the best place to open a buy silver trade, since it is even in an upward silver trend there is no need to wait for a confirmation silver trading signal, because you are buying in an upward Silver trend.

Example 4: Hidden XAGUSD Bearish Divergence

Hidden Silver Bearish Divergence trading setup signifies a retracement in a downward silver trend.

Stochastic Oscillator Silver Indicator Hidden Silver Bearish Divergence

Hidden silver trading bearish divergence xagusd trading setup is the best type of divergence to trade, because you are not trading a xagusd price silver trend reversal, but you are trading within the direction of the silver trend. This is the best place to open a sell silver trade, since it is even in a downward silver trend there is no need to wait for a confirmation silver trading signal, because you are selling in a downward Silver trend.