MACD CFD Trading Hidden Bullish & Bearish Divergence

MACD CFD Trading Hidden divergence pattern is used by traders as a possible sign for a trend continuation.

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

1. CFD Hidden Bullish Divergence

2. CFD Hidden Bearish Divergence

CFD Hidden Bullish Divergence in CFD

MACD CFD Trading Hidden bullish divergence trading setup occurs when price is making higher low ( HL ), but the MACD oscillator technical indicator is showing a lower low (LL).

Hidden bullish divergence occurs when there's a retracement in an upwards trend.

MACD Bullish Divergence CFD Strategy - MACD Bullish Divergence Trading Setup

This MACD bullish trade divergence setup confirms that a price retracement move is complete. This divergence shows underlying strength of an up-ward trend.

CFD Hidden Bearish Divergence in CFD

MACD CFD 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 set up occurs when there's a retracement in a downwards trend.

MACD Bearish Divergence CFD Strategy - MACD Bearish Divergence Trading Setup

This MACD hidden bearish divergence setup confirms that a retracement move is exhausted. This diverging indicates underlying momentum of a downwards trend.

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