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 trade setup occurs when price retraces to retest a previous high or low. The two MACD Hidden divergence setups are:
1. XAU/USD Hidden Bullish Divergence Trade Setup
2. XAU/USD 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 upward trend.
MACD Bullish Divergence Strategy - MACD Bullish Divergence Trade Setup
This MACD bullish trade divergence trade setup confirms that a price retracement move is complete. This divergence demonstrates under-lying momentum of an upward 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 signal that's in the same direction with the market trend. It provides for the best possible entry and is more accurate than the classic divergence setup.
Study More Topics and Lessons:
- Drawing Downwards Trend lines and Channels on Gold Charts
- Reversal Patterns: Head & Shoulders Pattern in Charts and Reverse Head & Shoulders Pattern in Gold Charts
- How Do You Trade MetaTrader 4 Platform MT4 User Course Tutorial?
- Gold Buy Long Trades vs XAU/USD Sell Short Trades in Charts
- How to Open a Live Gold Account: XAU/USD Live Account Opening & Sign Up
- How Do You Add a Custom Trading Indicator to MT4 Platform?