MACD Stock Index Hidden Bullish and Bearish Divergence

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

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

1. Hidden Bullish Divergence

2. Hidden Bearish Divergence

Hidden Bullish Divergence in Indices Trading

MACD Stock Index Hidden bullish divergence trading 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 upwards Indices trend.

MACD Bullish Divergence Indices Strategy - MACD Bullish Divergence Indices Setup

This MACD bullish Stock Indices trade divergence setup confirms that a price retracement move is complete. This divergence indicates underlying strength of an upwards Indices 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 trading setup occurs when there is a retracement in a downwards Indices trend.

MACD Bearish Divergence Indices Strategy - MACD Bearish Divergence Indices Setup

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

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