MACD Indices Hidden Bullish and Bearish Divergence

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

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

1. Indices Hidden Bullish Divergence

2. Indices Hidden Bearish Divergence

Indices Trading Hidden Bullish Divergence in Indices Trading

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

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

MACD Bullish Divergence Trading Strategy - MACD Bullish Divergence Indices 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 Indices Hidden Bearish Divergence trade setup forms when price is forming a lower high ( LH ), but the MACD oscillator 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 Trading Strategy - MACD Bearish Divergence Indices 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.