This is an educational post on
XAUUSD
Look how we can view divergences and predict movements on the underlying.
Various peeks and troughs are marked in yellow on the indicators RSI and MFI and the price acton not the chart for Gold
In the time frame shown in the chart, you can see a bullish divergence where we see the last yellow circle somewhere in June/July 2019, a new high made on RSI didn't have price action making a new high, which is then followed by a rise in price over the next few sessions.
Secondly, after the quick heavy run up, RSI falls sharply indicating the move from overbought position in a downward slop, marked in red, and price actions moves upwards, showcasing a bearish divergence. This is followed by a fall in price over the last few sessions for the recent highs.
I have taken the 50 day MA as the replica for the trend line and currently Gold is sitting right below the MA. It will find resistance at the MA, Watch out this space for more on when the next opportunity presents
If you like it, please share a thumbs up!
Cheers
XAUUSD
Look how we can view divergences and predict movements on the underlying.
Various peeks and troughs are marked in yellow on the indicators RSI and MFI and the price acton not the chart for Gold
In the time frame shown in the chart, you can see a bullish divergence where we see the last yellow circle somewhere in June/July 2019, a new high made on RSI didn't have price action making a new high, which is then followed by a rise in price over the next few sessions.
Secondly, after the quick heavy run up, RSI falls sharply indicating the move from overbought position in a downward slop, marked in red, and price actions moves upwards, showcasing a bearish divergence. This is followed by a fall in price over the last few sessions for the recent highs.
I have taken the 50 day MA as the replica for the trend line and currently Gold is sitting right below the MA. It will find resistance at the MA, Watch out this space for more on when the next opportunity presents
If you like it, please share a thumbs up!
Cheers