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 & one more xauusd technical indicator. For our example we shall use the RSI indicator.
To spot this xauusd divergence trading set up find two chart points at which gold price makes a new swing high or a new swing low but the RSI indicator doesn't, indicating a divergence between gold price & momentum.
RSI XAUUSD Divergence Example:
In the gold chart below we identify two chart points, point A and point B (swing highs)
Then using RSI indicator we check the highs made by the xauusd RSI technical indicator, these are the highs that are directly below the xauusd Chart points A & B.
We then draw one line on the gold chart and another line on the RSI indicator.
RSI Divergence XAUUSD Setup - XAUUSD Trading Divergence XAUUSD using RSI Technical Indicator
How to spot xauusd divergence
In order to spot this xauusd divergence setup we look for the following:
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 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 Gold Trading Divergence
- Hidden XAUUSD Trading Divergence
