Best Divergence Trading Indicator

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

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

RSI Hidden Bullish and Bearish Divergence Stock Indices Trade Setups

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

Hidden RSI Bullish Indices Trade Divergence Setup

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

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

Indices Trade Hidden Bullish Divergence - best divergence trading indicator

This set-up confirms that a retracement move is exhausted. This divergence demonstrates underlying power of an upward indices trend.

Hidden RSI Bearish Stock Index Trade Divergence Setup

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

Hidden bearish divergence in indices occurs when there is a retracement in a downwards trend.

Indices Hidden Bearish Divergence - best divergence trading indicator

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

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