MACD Hidden Bullish & Bearish Divergence
MACD Hidden divergence is used by the traders as a possible sign for a trend continuation.
This MACD Hidden divergence trading setup pattern occurs when trading price retraces to retest a previous high or low. The two MACD Hidden divergence patterns are:
1. Hidden Bullish Divergence Trade Setup
2. Hidden Bearish Divergence
Index Hidden Bullish Divergence in Indices Trade
MACD Hidden bullish divergence trading setup pattern 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 upwards trend.
MACD Bullish Divergence Strategy - MACD Bullish Divergence Setup
This MACD bullish trade divergence trade setup confirms that a price retracement move is complete. This divergence demonstrates underlying power of an upwards trend.
Index Hidden Bearish Divergence in Indices Trade
MACD Hidden Bearish Divergence 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 Bearish Divergence Setup
This MACD hidden bearish divergence trade setup confirms that a market price retracement move is exhausted. This diverging indicates underlying power of a downwards trend.
NB: Hidden divergence is the best stock trade divergence set up to trade because it generates a trading 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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