RSI XAUUSD Indicator Divergence XAUUSD Setups
XAUUSD Trading Divergence is one of the trade setups used by XAUUSD traders. It involves looking at a xauusd chart and one more xauusd technical indicator. For our example we shall use the RSI xauusd indicator.
To spot this xauusd divergence trading setup find two xauusd chart points at which gold price makes a new swing high or a new swing low but the RSI xauusd indicator does not, indicating a divergence between gold price and momentum.
RSI XAUUSD Trading Divergence Example:
In the gold chart below we identify two xauusd chart points, point A and point B (swing highs)
Then using RSI xauusd indicator we check the highs made by the xauusd RSI indicator, these are the highs that are directly below the xauusd Chart points A and B.
We then draw one line on the gold chart and another line on the RSI xauusd indicator.
RSI Divergence XAUUSD Setup - XAUUSD Trading Divergence XAUUSD using RSI XAUUSD Indicator
How to spot xauusd divergence
In order to spot this xauusd divergence setup we look for the following:
HH=Higher High- two highs but the last one is higher
LH= Lower High- two highs but the last one is lower
HL=Higher Low- two lows but the last one is higher
LL= Lower Low- two lows but the last one is lower
First let us look at the illustrations of these xauusd terms
Divergence XAUUSD Terms Definition
XAUUSD Trading Divergence XAUUSD Terms Definition Examples
There are two types of xauusd divergence setups:
- Classic Divergence
- Hidden Divergence
