FX:XAUUSD   Gold Spot / U.S. Dollar
70 0
Another strategy there I use when markets shows range behavior and which was quite useful to me, is RSI (14close) divergence.
When you are in a trend, in this case uptrend, and market makes a higher high (see the blu rectangle ) but RSI makes a lower low(see the blu rectangle ), means that price action and indicator don t agree on the direction and trend is losing momentum with very likely possibility to change it.

ENTRY: cause sometimes it may be a false alarm, I use two type of confirmation to justify my entry and start taking profit
-20 period moving average : when price cross MA in the direction you expect the trend will change, then entry the trade and take profit when price reaches next support
-divergence happens in area of support/resistance , if price breaks it, here is another confirmation to enter the trade.

Looking at the chart now, once said that, I'm therefore short and I will entry as soon as price breaks the new support (also fib level 61.80% at 1254.20 and cross the MA.

See my previous idea to check how I do trading and load the price to see where the price actually went so that you can have an idea on the accuracy of my systemS.

Happy trading to everyone.
Apr 12
Trade active: As you can see, in the area of the RSI divergence which just made a new lower high, price is about to cross 20MA.
If candles closes below the MA I will enter the trade short with small lot and add more if direction keeps going down breaking support at 1254.50 with TP at the next support and SL at previous resistance.

Trade safe people !
Apr 12
Trade active: entered with small lot as MA is been crossed.....I will add more if it breaks 1254.20 support and fib level
Apr 12
Trade active: expect it to retest 1260-1261 exactly where my SL are, before going down....
Apr 13
Trade closed: target reached: support reached at 1248......entered short at 1257 after price crossed MA.......+80pips
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