Stochastic Divergence Definition
Stochastic XAUUSD Trading Divergence XAUUSD is one of the xauusd strategy used by online gold traders to analyze chart gold price movement. Stochastic XAUUSD Divergence involves looking at a xauusd chart & one more gold technical indicator - Stochastic indicator. For our this xauusd divergence tutorials we shall use the Stochastic indicator - Stochastic XAUUSD Trading Divergence.
To spot this Stochastic gold divergence trading set up find two chart points at which gold price makes a new swing high or a new swing low but the Stochastic technical indicator does not do the same, thus indicating that there's a divergence between the gold price & momentum.
Stochastic XAUUSD Divergence Example:
In the gold chart below we identify two chart points, chart point Marked A and chart point Marked B (swing highs)
Then using Stochastic indicator we check the highs made by the Stochastic gold trading technical indicator, these are highs which are directly below the Chart points marked A & B.
We then draw one line on the gold chart and another line on the Stochastic indicator.
Stochastic XAUUSD Divergence Explanation - Bullish Divergence Stochastic - Bearish Divergence Stochastic - Stochastic Divergence PDF
How to trade Stochastic xauusd trading divergence
In order to trade Stochastic gold divergence setup we look for the following set-ups:
HH - Higher High - 2 highs but the last one is higher
LH - Lower High - 2 highs but the last one is lower
HL - Higher Low - 2 lows but the last one is higher
LL - Lower Low - 2 lows but the last one is lower
First let us look at the example of these gold divergence trading terms
What's Stochastic XAUUSD Divergence? - XAUUSD Stochastic Divergence Tutorial
Stochastic XAUUSD Trading Divergence Definition - Stochastic Divergence XAUUSD Tutorial - Stochastic XAUUSD Divergence Strategy PDF - Stochastic Divergence XAUUSD PDF
There are two types of xauusd Stochastic divergence setups:
- Stochastic Classic Divergence
- Stochastic Hidden Divergence
