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 Trading
MACD Index 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 Indices trade divergence confirms that a price pull-back is over. This divergence indicates underlying strength of an upward trend.
Hidden Bearish Divergence in Indices Trading
MACD Hidden Bearish Divergence trade setup forms when the 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 confirms that a retracement move is complete. This diverging indicates underlying strength of a downward trend.
NB: Hidden divergence is the best divergence 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.
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