Read Divergence in XAUUSD
How to Read Divergence in XAUUSD? - Divergence xauusd setup is one of the xauusd strategy used by traders - divergence xauusd involves looking at a xauusd chart and one more xauusd indicator. For our gold divergence trading example we shall use the MACD gold technical indicator.
To identify this gold divergence trading set-up find two chart points at which he gold price makes a new swing high or a new swing low but the MACD indicator doesn't, thus illustrating a xauusd divergence between the gold price & momentum.
To look for divergence xauusd signal we look for 2 chart points on a xauusd chart - two gold price highs which form an M shape on the xauusd chart or two gold price lows that form a W Shape on the gold chart. Then look for the same M-shape or W-Shape on gold technical indicator that you use to trade gold trading - for examples RSI indicator or MACD gold technical technical indicator.
Example of a Gold Trading Divergence Trade Setup:
In the xauusd chart below we identify two chart points, chart point A and chart point B - swing highs. These two chart points form an M-shape on the gold chart.
Then using MACD technical indicator we check highs made by the MACD technical indicator, these are highs that are directly below Chart point Marked A and Chart point Marked B.
We then draw one line on the xauusd chart & another line on the MACD indicator.
How Do You Interpret XAUUSD Trading Divergence XAUUSD Setup - Read Divergence in XAUUSD?
The xauusd chart above shows an example of one of the 4 different types of gold divergence trading setups, the gold divergence set up above is known as hidden bearish xauusd trading divergence.
How to Read divergence xauusd setup
In order to Read divergence gold signal we look 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
First let us look at the explanation of these gold divergence trading terms:
M shapes on XAUUSD charts
How Do You Interpret XAUUSD Trading Divergence XAUUSD Setup - Read Divergence in XAUUSD?
W Shapes on Gold charts
How to Read Divergence XAUUSD Signals
Read Divergence in XAUUSD
How to Read Divergence XAUUSD Signals
Read Divergence in Gold
How to Read Divergence XAUUSD Signals
Now that you have known the gold divergence trading terms used to explain divergence xauusd setup. There are two different types of xauusd divergences which are:
- Classic XAUUSD Trading Divergence
- Hidden XAUUSD Trading Divergence
Classic divergence trading set up & hidden divergence trading set up are explained on learn xauusd guides located in the main navigation menu of this learn xauusd website - under the topics learn xauusd lessons.
Read Divergence in XAUUSD?
