Stochastic Oscillator Bullish Divergence and Bearish Divergence Silver Trading

Divergence silver trading is one of the trading signals that can be generated when using the stochastic oscillator xagusd 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 price in one way while the majority of other traders have stopped trading in that direction and are cautious of a xagusd price correction or retracement.

There are 4 types of xagusd divergence trading setups

Example 1: Classic XAGUSD Bullish Divergence

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

Stochastic Oscillator Indicator Classic Silver Bullish Divergence

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

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

Example 2: Classic XAGUSD Bearish Divergence

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

Stochastic Oscillator Indicator Classic Silver Bearish Divergence

When price is making new highs but the Stochastic oscillator 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 trade hidden divergence trading setup is the best type of xagusd trade divergence setup to trade, because you aren't trading a xagusd price reversal, but you're trading within the direction of the trend.

Stochastic Oscillator Indicator Hidden Silver Bullish Divergence

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

Hidden silver trading bearish divergence xagusd trading setup is the best type of divergence to trade, because you aren't trading a xagusd price trend reversal, but you're trading within the direction of the trend. This is the best place to open a sell 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.