RSI Divergence Gold Technical Indicator Technical Analysis

Divergence trading concept is a concept where a trader will for a difference between the gold price movement with the movement of a technical trading indicator. For our examples we shall use the RSI technical indicator to explain divergence trading.

RSI indicator is one of the commonly used divergence trading indicator. This xauusd indicator is an oscillator similar to the RSI and it can be used to trade divergence setups just the same way as the RSI indicator.

RSI Gold Technical Analysis & RSI XAUUSD Signals

RSI Divergence Technical Indicator

RSI Divergence Indicator

Classic RSI Bullish Gold Trading Divergence Setup

RSI classic bullish divergence forms when price is forming lower lows ( LL ), but RSI technical indicator is making higher lows (HL).

XAUUSD Classic Bullish Divergence - RSI XAUUSD Divergence Definition

RSI 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 trading price lower was less as illustrated by the RSI indicator. This indicates underlying weakness of the downwards trading trend.

Hidden RSI Bullish XAUUSD Trading Divergence Setup

Forms when price is forming higher low ( HL ), but RSI technical indicator is making lower low (LL).

RSI hidden bullish divergence occurs when there is a retracement in an upwards gold trend.

XAUUSD Hidden Bullish Divergence - RSI XAUUSD Divergence Definition

This set-up confirms that a retracement move is complete. This RSI divergence setup indicates underlying strength of an upward gold trend.

RSI Divergence Technical Indicator

Hidden RSI Bearish Gold Trading Divergence Setup

Occurs when price is forming lower high ( LH ), but the oscillator indicator is showing higher high (HH).

Hidden bearish divergence forms when there's a retracement in a downwards trend.

XAUUSD Hidden Bearish Divergence - RSI XAUUSD Divergence Definition

This set-up confirms that a retracement move is complete. This divergence indicates underlying strength of a downwards gold trend.

RSI Classic bearish XAUUSD Trading Divergence Setup

RSI classic bearish divergence forms when price is showing higher high ( HH ), but the RSI technical indicator is forming lower high (LH).

XAUUSD Classic Bearish Divergence - RSI XAUUSD Divergence Definition

RSI Classic bearish divergence warns of a possible change in xauusd trend from up to down. This is because even though the gold price went higher the volume of buyers who pushed the gold price higher was less as shown by the RSI technical trading indicator. This indicates underlying weakness of the upward trading trend.