MACD Stock Indices Hidden Bullish and Bearish Divergence

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

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

1. Stock Indices Hidden Bullish Divergence

2. Stock Indices Hidden Bearish Divergence

Stock Indices Hidden Bullish Divergence in Stock Indices

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

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

MACD Bullish Divergence Stock Indices Strategy - MACD Bullish Divergence Stock Indices Setup

This MACD bullish stock trade divergence set-up confirms that a price retracement move is complete. This divergence indicates underlying strength of an upwards trend.

Stock Indices Hidden Bearish Divergence in Stock Indices

MACD Stock 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 setup occurs when there is a retracement in a downward trend.

MACD Bearish Divergence Stock Indices Strategy - MACD Bearish Divergence Setup

This MACD hidden bearish divergence set-up confirms that a market price retracement move is complete. This diverging indicates underlying strength of a downwards trend.

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