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 trades are very small relative to the 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:

1. XAUUSD Classic Bullish Divergence Setup
2. 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 warns of a possible change in the market trend from down to up. This is because even though the price went lower the volume of sellers who pushed the price lower was less as illustrated by the RSI indicator. This indicates 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 up to down. This is because even though the price went higher the volume of buyers who pushed the price higher was less as illustrated by the RSI indicator. This indicates underlying weakness of the up-wards trend.