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 & one more xauusd indicator. For our example we shall use the MACDgold technical indicator.
To spot this xauusd divergence setup find two chart points at which gold price makes a new swing high or a new swing low but the MACD indicator doesn't, indicating a divergence between gold price & 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 WShape on gold chart. Then look for the same M-shape or WShape on the xauusd indicator you use to trade.
Example of a Gold Divergence Trade Setup:
In the gold chart below we identify 2 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 indicator we check highs made by MACD technical indicator, these are the highs that are directly below Chart points A & B.
We then draw one line on the xauusd chart & another line on the MACD gold technical technical indicator.
Drawing XAUUSD Divergence XAUUSD Lines
The xauusd chart above shows example of one of the 4 types of xauusd divergence setups, the one xauusd divergence set up above is known as hidden bearish xauusd divergence 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 signal we look for 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 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 set-up. Let us look at the two types of divergences and how to trade these xauusd chart setups.
There two types are:
- Classic Divergence XAUUSD Setups
- Hidden Divergence XAUUSD Setups
These two setups are explained on the following guides 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.
