MACD XAUUSD Classic Bullish & Bearish Divergence
MACD XAUUSD Trading Classic divergence is used as a possible sign for a xauusd trend reversal. MACD classic divergence is used when looking for an area where gold trading price could reverse and start going in the opposite xauusd trend direction. For this reason MACD classic divergence is used as a low risk entry method and also as an accurate way of exit out of a gold trade.
1. It is a low risk technique to sell near the xauusd market top or buy near the xauusd market bottom, this makes the risk on your gold trades are very small relative to the potential reward.
2. It's used to predict the optimum point at which to exit a XAUUSD trade.
There are two types of XAUUSD Trading Classic Divergence:
- XAUUSD Classic Bullish Divergence
- Gold Classic Bearish Divergence
XAUUSD Classic Bullish Divergence in XAUUSD
Classic bullish divergence in xauusd occurs when price is forming lower lows ( LL ), but the oscillator indicator is forming higher lows (HL).
MACD XAUUSD Classic Bullish Divergence in Gold - MACD Divergence XAUUSD Strategy
Classic bullish divergence in xauusd warns of a possible change in the xauusd trend from down to up. This is because even though the gold price went lower the volume of sellers who pushed the gold trading price lower was less as illustrated by the MACD indicator. This indicates underlying weakness of the downwards gold trend.
Classic bearish divergence in XAUUSD
Classic bearish divergence in xauusd occurs when price is showing a higher high ( HH ), but the oscillator indicator is lower high (LH).
MACD XAUUSD Classic Bearish Divergence in Gold - MACD Divergence XAUUSD Strategy
Classic bearish divergence warns of a possible change in xauusd market xauusd trend from up to down. This is because even though the gold price went higher the volume of buyers who pushed the gold trading price higher was less as illustrated by the MACD indicator. This indicates underlying weakness of the upwards trend.
