Divergence MACD Classic Bullish and Bearish Setups
MACD Classic divergence is used as a possible sign for a xauusd trend reversal. Classic divergence is used when looking for an zone where gold price could reverse and begin going in opposite direction. For this reason classic divergence is used as a low risk entry method & also as an accurate way of exit out of a trade.
1. It is a low risk technique to sell near the xauusd market top or buy near the xauusd market bottoms, this makes the risk on your trades are very small relative to the potential reward.
2. It's used to predict the optimum point at which to exit a XAUUSD trade.
There are two types:
- XAUUSD Classic Bullish Divergence
- Gold Classic Bearish Divergence
XAUUSD Classic Bullish Divergence
Classic bullish divergence occurs when price is forming lower lows (LL), but the divergence macd indicator is making higher lows (HL).
Divergence MACD Classic Bullish
Classic bullish divergence warns of a possible change in the xauusd trend from down to up. This is because even though the gold price went lower the volume of sellers who pushed the gold price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downwards trading trend.
Classic bearish XAUUSD Trading Divergence Setup
Classic bearish divergence occurs when price is forming a higher high (HH), but the divergence macd indicator is lower high (LH).
Divergence MACD Classic Bearish
Classic bearish divergence warns of a possible change in the xauusd trend from up to down. This is because even though the gold price went higher the volume of buyers that pushed the gold price higher was less as illustrated by the Divergence MACD indicator. This indicates underlying weakness of the upward trading trend.
Divergence MACD Hidden Bullish and Bearish Setups
MACD Hidden divergence is used as a possible sign for a xauusd trend continuation.
This divergence trade set-up occurs when price retraces to retest a previous high or low.
1. XAUUSD Hidden Bullish Divergence
2. XAUUSD Hidden Bearish Divergence
Gold Hidden Bullish Divergence
Forms when price is forming a higher low (HL), but the MACD oscillator is showing a lower low (LL).
Hidden bullish divergence occurs when there is a retracement in an upward gold trend.
Divergence MACD bullish
This divergence confirms that a retracement move is complete. This divergence indicates underlying strength of an upward gold trend.
XAUUSD Hidden Bearish Divergence
Forms when price is forming a lower high (LH), but the MACD oscillator is showing a higher high (HH).
Hidden bearish divergence occurs when there is a retracement in an upwards gold trend.
divergence MACD bearish
This divergence trade set-up confirms that a retracement move is complete. This diverging indicates underlying strength of a downward gold trend.
