Divergence Indices Trading Strategy Tutorials Tutorial
Combining Indices Hidden Divergence with Moving Average Crossover Method and with Fibonacci Retracement Areas
Hidden divergence is used as trend continuation signal after the stock indices price has retraced. Indices hidden divergence is a signal that the original indices market trend is resuming. Hidden divergence the best divergence stock indices setup to trade because it gives a trading signal that is in same direction as that of the continuing stock indices trend.
Divergence Stock Indices Trading Strategy Tutorials Tutorial
Indices Trading Hidden Bullish Divergence Indices Trading - Indices Trading Hidden Bullish Divergence Indices Trading Strategy Tutorials PDF
This indices hidden bullish divergence setup confirms that a indices price retracement move is complete & signals underlying strength of a upward indices trend.
Divergence Indices Trading Strategy Tutorials Tutorial
Indices Trading Hidden Bearish Divergence Indices Trading - Indices Trading Hidden Bearish Divergence Indices Trading Strategy Tutorials PDF
Hidden bearish divergence confirms that a indices price retracement move is complete & signals underlying strength of a downwards stock indices trend.
Hidden divergence is the best type of stock indices trading divergence set-up to trade because it gives a stock indices signal that is in same direction as that of the current indices market trend -indices trend following strategies, thus it has a high risk to reward ratio. Hidden divergence stock indices set-up provides for the best possible entry and exit for stock indices trades.
However, a trader should combine hidden divergence stock indices signal with other indicators to confirm these stock indices trade signals.
Combining Indices Hidden Divergence with Moving Average Crossover Method
A good stock indices indicator to combine hidden divergence indices setup is the moving average indices indicator using moving average crossover trading strategy method. This will create a good indices divergence trading strategy.
Combining Hidden Divergence with Moving Average Crossover Indices Strategy Method
In this divergence indices trading strategy, once the indices signal is given, a trader will then wait for the moving average cross over strategy to give a buy signal or sell signal in the same direction as that given by the divergence indices setup, if there is a bullish divergence stock indices trading setup between the stock indices price and indices indicator, wait for the moving average crossover stock indices system to give an upward cross over indices signal, while for a bearish divergence stock indices trading setup wait for the moving average crossover stock indices trading system to give a downward bearish crossover indices trade signal.
By combining this divergence stock indices signal with other indicators this way a trader will avoid whipsaws when it comes to indices trading this hidden divergence indices trade signal.
Combining Hidden Divergence with Fibonacci Retracement Levels
For this indices divergence trading example we shall use an upwards stock indices trend. We shall use the MACD indicator.
Because the hidden divergence stock indices trading setup is just a retracement in an upwards indices trend we can combine this hidden divergence stock indices signal with the most popular indices retracement tool that is the Fibonacci retracement levels. Examples explained below shows that when this hidden divergence indices setup appeared on the stock indices chart, the stock indices price had just hit the 38.2% Fibonacci retracement level. When stock indices price tested this retracement level, this would have been a good level to place a buy indices order on the stock indices trading chart.
Combining Indices Hidden Divergence with Fibonacci Retracement Levels
In the indices divergence example above once the buy indices trade was placed, a trader would then need to calculate where to take profit for this indices trade. To do this a trader would need to use the Stock Indices Fib Expansion Levels.
The Fib expansion levels indicator was drawn as displayed on the stock indices trading chart as is shown below.
Combining Hidden Divergence with Fibonacci Retracement Levels Indices Trading
For this stock indices trading examples there were 3 take profit areas:
Fibonacci Expansion Level 61.80%
Fibo Expansion Level 100.0%
Fibonacci Expansion Level 161.80%
From this divergence indices trading strategy combined with Fibonacci indices technical indicator would have provided a good indices strategy with a good amount of profit set using these take Fibonacci expansion profit levels.
