MACD Hidden Bullish & Bearish Divergence
MACD Hidden divergence is used by the Gold traders as a possible signal for a trend continuation.
This MACD Hidden divergence setup occurs when price retraces to retest a previous high or low. The two MACD Hidden divergence setups are:
1. XAUUSD Hidden Bullish Divergence Setup
2. XAUUSD Hidden Bearish Divergence Setup
Trade Hidden Bullish Divergence in XAUUSD Trading
MACD Hidden bullish divergence setup occurs when price is forming a higher low (HL), but MACD oscillator trading is showing a lower low (LL).
Hidden bullish divergence setup occurs when there's a retracement in an upwards trend.
MACD Bullish Divergence Trade Strategy - MACD Bullish Divergence Trade Setup
This MACD bullish trade divergence setup confirms that a price retracement move is complete. This divergence demonstrates under-lying momentum of an upwards trend.
Trade Hidden Bearish Divergence in XAUUSD Trading
MACD Trade Hidden Bearish Divergence trade setup forms when price is making/forming a lower high ( LH ), but MACD oscillator trading is displaying a higher high ( HH ).
Hidden bearish divergence set up occurs when there's a retracement in a down-wards trend.
MACD Bearish Divergence Trade Strategy - MACD Bearish Divergence Trade Setup
This MACD hidden bearish divergence setup confirms that a price retracement move is complete. This diverging indicates underlying momentum of a downwards trend.
NB: Hidden divergence is the best trade divergence setup to trade because it gives a trade signal that is in the same direction with the market trend. It provides for the best possible entry & is more accurate than the classic divergence setup.
Study More Topics and Lessons:
- Drawing Downwards Trendlines & Channels on Gold Charts
- Reversal Patterns: Head and Shoulders Pattern in Gold Charts & Reverse Head and Shoulders Pattern in Gold Charts
- How Do You Trade MetaTrader 4 Gold Platform MT4 User Tutorial Guide?
- Gold Buy Long Trades vs XAU USD Sell Short Trades in Gold Charts
- How to Open a Live Gold Account: XAU/USD Live Account Opening
- How Do You Add a Custom Trading Indicator to MT4 Platform?