RSI XAUUSD Classic Bullish Divergence & XAUUSD Classic Bearish Divergence Trade Setups
XAUUSD classic divergence is used as a possible sign for a trend reversal. Classic divergence trading setup is used when searching for an area where price could reverse & start going in the opposite direction. For this reason xauusd gold classic divergence is used as a low risk entry method and also as an accurate way to exit of a position.
- Classic divergence is a low risk method to sell near the top or buy near the bottom of a trend, this makes the risk on your trades are minimum in relation to potential reward.
- Classic divergence is used to predict the optimum ideal level at which to exit a trade position position
There are 2 types of RSI Classic divergence trading setups:
- XAUUSD Classic Bullish Divergence Trading Setup
- XAUUSD Classic Bearish Divergence Trade Setup
Classic Trade Bullish Divergence
Classic xauusd bullish divergence occurs when price is making/forming lower lows ( LL ), but the oscillator technical is making/forming higher lows (HL).
Classic XAU/USD Bullish Divergence - RSI XAUUSD Strategies
Classic bullish divergence signals a possible shift in the market trend from downwards to upward. This is because though the price moved lower the volume of sellers that moved the price lower was less like as shown by RSI indicator. This reflects the under-lying weakness of the downwards trend.
Classic XAU/USD Trade bearish divergence
Classic xauusd bearish divergence occurs when price is showing a higher high ( HH ), but the oscillator technical indicator is lower high (LH).
XAUUSD Classic Bearish Divergence with RSI Indicator Strategies
Classic xauusd bearish divergence warns of a possible change in the trend from upwards to downward. This is because though the price moved higher the volume of buyers that moved the price higher was less such as shown by RSI indicator. This reflects underlying weakness of the upwards trend.
Get More Courses & Tutorials:
- Support & Resistance Levels Expert Advisor(EA) Setup
- How Do You Trade US TEC 100 Lesson Guide Download?
- How to Trade Stocks Online with MT4 and MT5 Trade Software
- AUDCHF System AUDCHF Strategy
- Bollinger Band Indicator Settings on MetaTrader 4 Platform
- What are T3 Moving Average Buy and Sell Trade FX Signals?