RSI XAUUSD Classic Bullish Divergence & XAUUSD Classic Bearish Divergence XAUUSD Setups

XAUUSD Trading classic divergence is used as a possible sign for a xauusd trend reversal. Classic divergence setup is used when looking for an area where gold trading price could reverse and start going in the opposite direction. For this reason xauusd trading classic divergence is used as a low risk entry method and also as an accurate way of exit out of a gold trade.

• Classic divergence is a low risk method to sell near the top or buy near the bottom of a xauusd market trend, this makes the risk on your gold trades are very small relative to the potential reward.

• Classic divergence is used to predict the optimum point at which to exit a xauusd trade

There are two types of RSI Classic divergence trading setups:

1. XAUUSD Classic Bullish Divergence Setup
2. XAUUSD Classic Bearish Divergence Setup

Classic Gold Trading Bullish Divergence

Classic xauusd bullish divergence occurs when price is forming lower lows ( LL ), but the oscillator indicator is forming higher lows (HL).

Classic XAUUSD Trading Bullish Divergence - RSI XAUUSD Strategies

Classic bullish xauusd divergence warns of a possible change in the xauusd market xauusd trend from down to up. This is because even though the gold price went lower the volume of sellers that pushed the gold trading price lower was less as illustrated by the RSI xauusd indicator. This indicates underlying weakness of the downwards gold trend.

Classic XAUUSD Trading bearish divergence

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

XAUUSD Classic Bearish Divergence XAUUSD with RSI XAUUSD Indicator Strategies

Classic xauusd 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 trading price higher was less as illustrated by the RSI xauusd indicator. This indicates underlying weakness of the upwards trend.