MACD Index Hidden Bullish & Bearish Divergence

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

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

1. Hidden Bullish Divergence

2. Hidden Bearish Divergence

Hidden Bullish Divergence in Indices Trade

MACD Index Hidden bullish divergence trading pattern 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.

How to Trade the with MACD Hidden Bullish Divergence and Hidden Bearish Divergence Strategies

MACD Bullish Divergence Strategy - MACD Bullish Divergence Setup

This MACD bullish Indices trade divergence confirms that a price pull back is over. This divergence indicates underlying strength of an upward market trend.

Hidden Bearish Divergence in Indices Trade

MACD Hidden Bearish Divergence setup forms when the price is forming/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 downwards trend.

MACD Bearish Divergence Strategy - MACD Bearish Divergence Setup

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

NB: Hidden divergence is the best divergence to trade because it gives and generates a signal that's 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.

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MACD Index Hidden Bullish & Bearish Divergence

Hidden Bullish Divergence in Indices Trade

Hidden Bearish Divergence in Indices Trade