Trading XAUUSD with Divergence on MT4 MT5 PDF Free Download

Divergence XAUUSD Setup is one of the trade setups used by XAUUSD traders. It involves looking at a xauusd chart and one more xauusd indicator. For our example we shall use the MACDgold technical indicator.

To spot this xauusd divergence trading setup find two chart points at which gold price makes a new swing high or a new swing low but the MACD xauusd indicator does not, indicating a divergence between gold price and momentum.

To look for divergence xauusd setup we look for two chart points, two highs that form an M-shape on the xauusd chart or two lows that form a W Shape on the gold chart. Then look for the same M-shape or W Shape on the xauusd indicator you use to trade.

Example of a Gold Divergence Trade Setup:

In the gold chart below we identify two chart points, point A and point B (swing highs). These two chart points form an M-shape on the gold price chart.

Then using MACD xauusd indicator we check the highs made by the MACD indicator, these are the highs that are directly below Chart points A and B.

We then draw one line on the xauusd chart and another line on the MACD gold trading technical trading indicator.

Drawing XAUUSD Divergence XAUUSD Lines

The xauusd chart above shows an example of one of the four types of xauusd divergence setups, the one xauusd divergence trading setup above is known as hidden bearish xauusd divergence trading setup, one of the best type to trade. Types of xauusd divergences are covered in the next learn xauusd tutorial lesson.

How to spot xauusd divergence setups

In order to spot Gold divergence trading signal 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 gold divergence trading terms:

M-shapes dealing with Gold price Highs

W Shapes dealing with XAUUSD price lows

Example of M Shapes on Gold Charts

Examples of W Shapes on XAUUSD Charts

Now that you have learned the xauusd divergence trading terms that are used to explain divergence xauusd setup. Let us look at the two types of divergences and how to trade these xauusd chart setups.

There two types are:

1. Classic Divergence XAUUSD Setups

2. Hidden Divergence XAUUSD Setups

These two setups are explained on the following tutorials below

Classic Divergence XAUUSD Setup

Hidden Divergence XAUUSD Setup

Trading XAUUSD with Divergence on MT4 MT5 PDF Download - Trading XAUUSD with Divergence on MT4 MT5 PDF Free Download - MT4 MT5 Divergence XAUUSD Tutorial.