Types of Bearish Divergence Setups
Types of XAUUSD Divergence Definition - Divergence is a setup used by traders - XAUUSD Divergence Setups involves looking at a chart & a indicator - for examples MACD indicator.
To find this XAUUSD Divergence Setups setup find two chart points which price makes a new swing high or a new swing low but MACD indicator doesn't do the same, this signals a divergence between price and MACD technical indicator momentum.
For a Divergence Setups setup we look for 2 chart points, 2 highs that form an M shape on the chart or two lows that form a W-Shape on the chart. Then look for the same M-shape or W-Shape on MACD.
Example of a Trading Divergence Trade Setup:
In the chart below we identify two chart points, point A and point B (swing highs). These two chart points form an M shape on the price chart.
Then using xauusd trading MACD technical indicator we check the highs made by the MACD technical indicator, these are highs which are directly below Chart points marked A & B.
We then plot one line on the chart & another line on the MACD indicator.
XAUUSD Divergence Setups Signals - Types of XAUUSD Divergence Explanation - Types of XAUUSD Divergence Meaning
The chart above displays an example of hidden bearish Divergence setup.
hat is Divergence Setups Types of XAUUSD Divergence
In order to trade Divergence Setups signal we check for the following:
- HH : Higher High - 2 highs but the last one is higher
- LH : Lower High - 2 highs but the last one is lower
- HL : Higher Low - 2 lows but the last one is higher
- LL : Lower Low - 2 lows but the last one is lower
XAUUSD Divergence Setups Terms Definition: Different Types of XAUUSD Divergence Setups - Types of XAUUSD Divergence
M shapes on charts dealing with price Highs
W Shapes on charts dealing with price lows
Types of Bearish Divergence Setups - Types of Bullish Divergence Trading Setups
Types of Bearish Divergence Setups - Types of Bullish Divergence Trading Setups
Different Types of XAUUSD Divergence Setups - Types of Trading Divergence - Types of Bearish Divergence Setups - Types of Bullish Divergence Setups - Types of XAUUSD Divergence Explanation - Types of XAUUSD Divergence Meaning
