I like to pick situations where there is no noise between peaks. In your example, there is some noise, but it is not important, so I would consider it for a good HD pattern, especially because there is a clear trend down. There was a good example of ...

Hidden divergence

According to Greene, the entry should be made in a a timeframe 8 to 12 times lower. He even gives examples of timeframes a lot lower than that. In your case, I would suggest using the 1 min or 2 min TF if your trading platform allows it. Using the 5 ...

Hidden divergence

Another trading setup with AUDCAD. A HD pattern on the Monthly chart and waiting for entries on the trading zone on the 4 HR chart as long as MACD stays under the zero line on the Weekly chart. image

Hidden divergence

Here is an example with NZDUSD that I am trading right now. I identified a hidden divergence pattern on the monthly chart (red vertical line) and the start of a trading zone on the Weekly chart (green vertical line and blue rectangle). Using the 4HR ...

Hidden divergence

You are right, there was an entry signal on the 1 HR chart when MACD crossed the zero line. But then it reversed shortly after and crossed back the zero line upwards. If you put your stop loss at the last swing high, the trade is still open and ...

Hidden divergence

Hi rmchokku, I think that you get the idea. But my charts are telling me that it is too early to enter a trade. On my 4HR chart, indicators are just starting to indicate the a HD pattern (horizontal yellow dotted lines). If I go back 1 candle from ...

Hidden divergence

GBPCAD is showing a potential hidden divergence pattern on the 4 HR timeframe. image

Hidden divergence

Hi rmchokku, Here is a recent situation where a hidden divergence was identified on the Weekly chart. I did not cherry picked that case, but simply took the first one I found on that timeframe. It is my way of analysing charts and my contribution to ...

Hidden divergence

You can enter a trade only with trendlines and price action on a unique timeframe, as I sometimes do, but I am trying to give me more chances in detecting a winning situation. I know I will experience losing trades once in a while, but I try to ...

Hidden divergence

Hi rmchokku, I think that standard settings of indicators is a good way of using them for divergence identification. I don't use RSI, but for MACD I like the 8,17,9 as it was proposed by Gerald Appel for Daily charts. I find it a little more ...

Hidden divergence

Here is one way of trading the HD pattern. I am giving the example of NZDUSD: Identifying a HD pattern on the Monthly chart (red vertical line). Going to the next shorter timeframe (Weekly chart) and waiting for MACD to cross the zero line wich is ...

Hidden divergence

HD patterns forming on Daily charts. I will be waiting for entries on the 4HR. image image image

Hidden divergence

Hi Jube, I had spotted a bearish HD pattern on the 4HR of the same pair. Sometimes it might look contradictory, but in the case of the Daily chart there doesn't seem to be a clear trend. I see one downwards in the 4HR chart, but as always, I wait ...

Hidden divergence

This pair is also worth to watch closely on the 4 HR chart. image

Hidden divergence

Here is a good setup for the start of next week. A clear hidden divergence pattern on the 4 HR chart and MACD just crossing down the zero line on the 1 HR chart. In this case, I would wait for price to cross the dotted trendline since we are at the ...

Hidden divergence

Here is a pair that I will be following at the start of next week: First, a hidden divergence pattern is identified on the Monthly chart (red vertical line). Second, MACD has crossed the zero line down (green vertical line) on the Weekly chart, wich ...

Hidden divergence

Hidden divergence on Monthly charts. In both cases, I am getting a trading zone signal (MACD crossing the zero line) on the Weekly charts. I will monitor the trades probably on H16 charts next week. image image

Hidden divergence

Here is a follow up. After the start of the trading zone (red vertical line and blue square), a first entry signal (down arrow) came up on the 30 minutes chart. I entered late, I woke up late this morning. I think an EA would be useful once a ...

Hidden divergence

What articles are you referring to? Personally, I use multiple timeframe analysis for both the trend and the entry. The HD pattern is a continuation pattern, so I want to be trading in the direction of the bigger picture, the next higher timeframe. ...

Hidden divergence