Hidden Bullish vs Hidden Bearish Divergence - Forex Hidden Divergence Setups

Hidden Bullish Divergence vs Hidden Bearish Divergence - Forex Hidden Divergence

Hidden divergence is used as trend continuation signal after the price has retraced. Forex hidden divergence is a trading signal that the original forex market trend is resuming. Hidden divergence the best divergence forex trading set up to trade because it gives a trading signal that is in same direction as that of the continuing forex market trend.

Hidden Bullish Divergence - Forex Hidden Divergence Trading Setup

This setup happens when price is making a higher low (HL), but the oscillator (indicator) is showing a lower low (LL). To remember them easily think of them as W-shapes on Chart patterns. It occurs when there is a retracement in an upward Forex trend.

The example below shows an image of this setup, from the screenshot the price made higher low (HL) but the indicator made a lower low (LL), this shows that there was a divergence signal between the price and indicator. This signal shows that soon the market uptrend is going to resume. In other words it shows this was just a retracement in an uptrend.

Trading Forex Hidden Bullish Divergence - Forex Hidden Divergence Setup - Forex Trading Divergence Cheat Sheet

This forex hidden bullish divergence setup confirms that a forex price retracement move is complete & signals underlying strength of a forex uptrend.

Hidden Bearish Divergence - Forex Hidden Divergence Trading Setup

Forex hidden bearish divergence forex trading setup happens when FX trading price is making a lower high (LH), but the indicator is showing a higher high (HH). To remember these forex set ups easily think of them as M-shapes on Forex Chart patterns. Hidden bearish divergence forms when there is a forex price retracement in downwards trend.

The hidden bearish divergence example below shows an example of this forex trading setup - the forex price made lower high (LH) but the indicator made a higher high (HH), which shows a divergence between the forex price and the forex indicator. This signals that soon the forex market downward trend is going to resume. In other words this divergence forex setup shows that this was just a retracement in a downward trend.

Trading Forex Hidden Bearish Divergence - Forex Hidden Divergence Setup - Forex Trading Divergence Cheat Sheet

Hidden bearish divergence confirms that a forex price retracement move is complete & signals underlying strength of a downwards forex trend.

NB: Hidden divergence is the best type of forex trading divergence set-up to trade because it gives a forex signal that's in same direction as that of the current forex market trend, thus it has a high risk to reward ratio. Hidden divergence forex set-up provides for the best possible entry and exit for forex trades.