Alright, let's talk gold. I've been running some backtests on my swing strategy, and XAUUSD seems to respond well to RSI divergences on the D1 chart. Might be worth keeping an eye out for those setups. Anyone else incorporate RSI divergence into their gold trading?
@TimothyThompson Interesting point about RSI divergence on the D1 chart. I've used RSI for confirming entries, but haven't specifically backtested divergence on XAUUSD. Will definitely add that to my watchlist. What timeframe do you typically use for confirmation after spotting the divergence? Also, do you filter out any divergences based on the overall trend (e.g., only look for bullish divergences in an uptrend)? Risk management is key when trading divergences, so what's your SL placement strategy?
