Trade Stock Indices

MACD Hidden Bullish & Bearish Divergence

MACD Hidden divergence is used by traders as a possible sign for a trend continuation.

This MACD Hidden divergence trading setup occurs when trading price retraces to retest a previous high or low. The two MACD Hidden divergence trading set-ups are:

1. Hidden Bullish Divergence Setup

2. Hidden Bearish Divergence

Indices Hidden Bullish Divergence in Indices Trading

MACD Hidden bullish divergence trading setup occurs when price is forming a higher low ( HL ), but MACD oscillator trading is showing a lower low (LL).

Hidden bullish divergence occurs when there is a price retracement in an upward trend.

MACD Bullish Divergence Strategy - MACD Hidden Bullish Divergence Setup

MACD Bullish Divergence Strategy - MACD Bullish Divergence Setup

This MACD bullish trade divergence setup confirms that a trading price retracement move is complete. This divergence demonstrates underlying strength of an upwards trend.

Indices Hidden Bearish Divergence in Indices Trading

MACD Hidden Bearish Divergence trade setup forms when price is forming a lower high ( LH ), but the MACD oscillator indicator is showing a higher high ( HH ).

Hidden bearish divergence trading set-up forms when there is a retracement in a downwards trend.

MACD Bearish Divergence Strategy - MACD Hidden Bullish vs MACD Hidden Bearish Divergence Setups

MACD Bearish Divergence Strategy - MACD Bearish Divergence Setup

This MACD hidden bearish divergence setup confirms that a market price retracement move is exhausted. This diverging indicates underlying strength of a downward trend.

NB: Hidden divergence is the best stock trade divergence set up to trade because it gives a signal that is in the same direction with the trading market trend. It provides for the best possible entry and is more accurate than the classic type of divergence trade signal.

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