Best Divergence Indicator

The best divergence technical indicator is the RSI indicator, traders can use this technical indicator to check divergence when trading indices.

The 2 types of divergence -bullish and bearish divergence are described below.

RSI Hidden Bullish and Bearish Divergence Indices Trading Setups

Hidden divergence is used by traders as a possible sign for a indices trend continuation. Hidden divergence occurs when stock indices price retraces to retest a previous high or low.

Hidden RSI Bullish Indices Trading Divergence Setup

Forms when stock indices price is forming a higher low ( HL ), but the oscillator is showing a lower low (LL).

Hidden bullish divergence in indices occurs when there's a retracement in an upward indices trend.

Indices Trading Hidden Bullish Divergence - best divergence indicator

This setup confirms that a retracement move is exhausted. This divergence demonstrates underlying strength of an upward indices trend.

Hidden RSI Bearish Stock Indices Trading Divergence Setup

Forms when stock indices price is forming a lower high ( LH ), but the RSI is showing a higher high ( HH ).

Hidden bearish divergence in indices occurs when there is a retracement in a down-wards trend.

Indices Hidden Bearish Divergence - best divergence indicator

This stock indices trade divergence confirms that a retracement move is exhausted. This stock indices trade divergence indicates underlying strength of a downwards trend.