MACD Stock Hidden Bullish & Bearish Divergence

MACD Stock Hidden divergence is used as a possible sign for a trend continuation.

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

1. Hidden Bullish Divergence

2. Hidden Bearish Divergence

Hidden Bullish Divergence in Indices Trading

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

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

MACD Bullish Divergence Strategy - MACD Bullish Divergence Setup

This MACD bullish Stock trade divergence setup confirms that a price retracement move is complete. This divergence indicates underlying strength of an upward trend.

Hidden Bearish Divergence in Indices Trading

MACD Hidden Bearish Divergence trade setup forms when price is making 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 Strategy - MACD Bearish Divergence Setup

This MACD hidden bearish divergence setup confirms that a retracement move is complete. This diverging indicates underlying strength of a downward trend.

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