Trade Stock Indices

MACD Hidden Bullish & Bearish Divergence

Traders frequently use MACD hidden divergence as a potential confirmation point for the continuation of an existing price trend.

This MACD hidden divergence pattern forms when price pulls back to test a prior high or low. It comes in two types.

1. Hidden Bullish Divergence Trade Setup

2. Hidden Bearish Divergence

Index Hidden Bullish Divergence in Indices Trade

MACD hidden bullish divergence happens when price forms a higher low. But the MACD shows a lower low.

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

MACD Bullish Divergence Strategy - MACD Hidden Bullish Divergence Setup

MACD Bullish Divergence Trading Method - MACD Bullish Divergence Setup

This specific configuration involving MACD bullish divergence validates the completion of a market price retracement. Such a divergence confirms the underlying vigor sustaining the upward trajectory.

Index Hidden Bearish Divergence in Indices Trade

A MACD Hidden Bearish Divergence happens when the price forms a lower high (LH), but the MACD indicator shows a higher high (HH).

Hidden bearish divergence buying and selling set-up paperwork when there's a retracement in a downwards trend.

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

MACD Bearish Divergence Trading Strategy Setup

This trading setup using MACD showing a hidden bearish divergence confirms that the market price has finished going back up temporarily. This divergence shows the power of a trend going down.

Note: Hidden divergence makes the best trade setups. It signals in line with the main trend. It gives strong entry points and beats regular divergence for accuracy.

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