Hidden Divergence
Swing

Hidden divergence signals trend continuation. When price makes a higher low but RSI/MACD makes a lower low, it indicates the underlying trend is strong.

Swing4H, Daily2:1 R:RConservative
Deploy This Strategy See Rules

Rules & Configuration

The full rule set, required indicators, suggested configuration, execution flow, and performance parameters for the Hidden Divergence Swing setup.

Hidden divergence signals trend continuation. When price makes a higher low but RSI/MACD makes a lower low, it indicates the underlying trend is strong.

Indicators Used
RSI (14)MACDEMA 50
Rules
📈 Bullish Hidden Divergence
  • Price makes a higher low (uptrend intact)
  • RSI makes a lower low (hidden bullish divergence)
  • Price must be above EMA 50
  • Enter on bullish candle after divergence confirms
📉 Bearish Hidden Divergence
  • Price makes a lower high (downtrend intact)
  • RSI makes a higher high (hidden bearish divergence)
  • Price must be below EMA 50
  • Enter on bearish candle after divergence confirms
💡 Pro Tip

Hidden divergence on the daily chart combined with regular divergence on the 4H chart creates a high-quality swing entry.

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