Types of Bullish Commodity Trading Divergence Setups

Types of Commodity Trading Divergence Definition - Divergence is a commodities trading setup used by Commodity traders - Commodity Trading Divergence Setups involves looking at a commodity chart & a commodity indicator - for example MACD indicator.

To find this Commodity Trading Divergence Setups setup find two chart points which commodity price makes a new swing high or a new swing low but the MACD indicator does not do the same, this commodity signals a divergence between commodity price & MACD technical indicator momentum.

For a Commodity Trading Divergence Setups setup we look for 2 chart points, 2 highs which form an M shape on the commodity chart or 2 lows that form a WShape on the commodities trading chart. Then look for the same M-shape or WShape on the Commodity Trading MACD indicator.

Example of a Commodity Trading Divergence Setup Trade Setup:

In the commodities chart below we spot 2 chart points, point A and point B (swing highs). These 2 chart points form an M-shape on the commodity price chart.

Then using MACD technical indicator we check the highs made by the MACD technical indicator, these are highs that are directly below Chart points marked A & B.

We then draw one line on the commodity chart & another line on the MACD indicator.

Commodity Trading Divergence Setups Signals - Types of Commodity Trading Divergence Explanation - Types of Commodity Divergence Definition

The commodity chart above shows example of hidden bearish Commodities Trading Divergence setup.

hat is Commodity Trading Divergence Setups Types of Commodity Trading Divergence

In order to trade Commodity Divergence Setups trading signal we look for the following:

• HH : Higher High - 2 highs but the last one is higher
• LH : Lower High - two highs but the last one is lower
• HL : Higher Low - 2 lows but the last one is higher
• LL : Lower Low - two lows but the last one is lower

Commodity Trading Divergence Setups Terms Definition: Different Types of Commodity Trading Divergence Setups - Types of Commodity Trading Divergence

M shapes on Commodities charts dealing with Commodity price Highs

W Shapes on Commodities charts dealing with Commodity price lows

Types of Bearish Commodities Divergence Setups - Types of Bullish Commodity Trading Divergence Setups

Types of Bearish Commodities Divergence Setups - Types of Bullish Commodity Trading Divergence Setups

Types of Commodities Trading Divergence - Types of Bearish Commodity Divergence Setups - Types of Bullish Commodity Trading Divergence Setups - Types of Commodity Trading Divergence Explanation - Types of Commodity Divergence Definition