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MACD Classic Bullish & Bearish Divergence

MACD Classic divergence is used as a possible signal for a trend reversal. MACD classic divergence is used when looking for an area where gold price could reverse & begin going in the opposite market direction. For this reason MACD classic divergence is used as a low risk entry method/technique and also as an accurate way of exit out of a gold trade.

1. It's a low risk technique to sell near the market top or buy near the market bottom, this makes the risks on your gold trade positions are small compared to the potential reward.

2. It is used to predict the optimum ideal point/level at which to exit an opened/executed trade position.

There are 2 types of Classic Divergence:

  1. XAUUSD Classic Bullish Divergence
  2. XAU USD Classic Bearish Divergence

XAUUSD Classic Bullish Divergence in XAUUSD

Classic bullish divergence in xauusd occurs when price is making/forming lower lows ( LL ), but oscillator technical is making/forming higher lows (HL).

MACD Classic Bullish Divergence and Classic Bearish Divergence

MACD Classic Bullish Divergence in Gold - MACD Divergence XAU USD Method

Classic bullish divergence in xauusd warns of a possible change in the trend from downward to upward. This is because even though price headed higher lower the volume of sellers that moved the price lower was less just as is shown by MACD indicator. This reflects underlying weakness of the downwards gold trend.

Classic bearish divergence in XAUUSD

Classic bearish divergence in xauusd occurs when price is showing a higher high ( HH ), but oscillator technical indicator is lower high (LH).

MACD Classic Bullish Divergence and Classic Bearish Divergence - MACD Classic Divergence Gold Strategies

MACD Classic Bearish Divergence in Gold - MACD Divergence XAUUSD Method

Classic bearish divergence signals a possible reversal in market trend from up to down. This is because though price moved higher higher the volume of buyers who moved price higher was less such as shown by MACD indicator. This reflects the underlying weakness of the upwards trend.

Learn More Lessons and Tutorials & Guides:

Forex Market Traders Seminar Gala

Forex Market Traders Seminar

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