RSI XAUUSD Classic Bullish Divergence & XAUUSD Classic Bearish Divergence Setups
XAUUSD classic divergence is used as a possible sign for a trend reversal. Classic divergence setup is used when looking for an area where price could reverse & 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 trade.
- Classic divergence is a low risk method to sell near the top or buy near the bottom of a market trend, this makes the risk on your trade transactions are minimum in relation to potential reward.
- Classic divergence is used to predict the optimum point at which to exit a trade
There are two types of RSI Classic divergence setups:
- XAUUSD Classic Bullish Divergence Setup
- XAUUSD Classic Bearish Divergence Setup
Classic Trade Bullish Divergence
Classic xauusd bullish divergence occurs when price is forming lower lows ( LL ), but the oscillator is forming higher lows (HL).
Classic XAUUSD 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 as illustrated by RSI indicator. This indicates the underlying weakness of the down-wards trend.
Classic XAUUSD Trade bearish divergence
Classic xauusd bearish divergence occurs when price is showing a higher high ( HH ), but the oscillator 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 as illustrated by RSI indicator. This indicates underlying weakness of the up-wards trend.
