Hidden divergence

Can you share this template. Thanks

CHFJPY Weekly. Hidden Divergence pattern. A good start for long trade signals on lower timeframes.

NZDCAD Weekly. Hidden Divergence pattern. A good start for short signals on lower timeframes.

XRPUSD. A bullish Hidden Divergence pattern on the 4HR chart. Waiting for bullish signals on the 1HR TF.

CHFJPY. A bullish HD pattern developing on the Weekly chart. Potential long trigger signals on the Daily chart.

EURCAD:

1. Monthly: Bullish HD pattern.
2. Weekly: Bullish Regular Divergence pattern and the Start of a Trading Zone.
3. 4HR: Waiting for MACD Zero Line Cross in the Trading Zone.

We've got to be patient with higher timeframes.

XRPUSD. Crypto!. An interesting situation. We can see a bullish HD pattern on the Weekly chart where MACD already crossed the Zero line upwards. It is not the exact rule I follow, but we can consider the cross as a start of a Trading Zone. Switching to the 4HR chart. I am waiting for MACD to cross the zero line for entry signals. A nice setup to monitor over the weekend.

Here are the Hidden Divergence patterns developing on all pairs / charts right now. They were picked out of what I think are the most obvious visual patterns generated by the 8-17-9 MACD line. The same can be done with the MACD histogram which would add up to the overall trading opportunities. Not all will end up with entries as we have to wait for trigger signals.

There seems to be a bullish momentum with Yen pairs on the Weekly charts. As a matter of fact, the Yen currency is showing a bearish HD pattern suggesting a movement downwards to occur in the next few days. But things can change, let's wait and see.

For those still interested in Hidden Divergence, here is a setup I am watching closely:

1. A bullish HD pattern on the Weekly chart.
2. The start of a Trading zone on the Daily chart as MACD just crossed the zero line upwards.
3. Waiting for MACD to cross the zero line on the 2HR chart for long entry signals.

May peace, health, and happiness be with you in every walk of your life. And may each new moment brings the best for you. All the best..

Here is an indi maybe it helps somebody

GBPUSD. Bearish HD pattern on a Daily chart and bearish Regular Divergence pattern on the 4HR. Price is at a strong resistance level on the Daily. Waiting for price to break the trendline downwards on the 4HR.

I just want to ask since I had backtested HD on forex, it sometimes give false signal. And it is mostly happening at the end of a trend. Therefore I usually take my profit early. Is there any successful trader with proven track records using HD strategy? I know chamane and Dany has been using this since 2016. I am maybe converting fully to HD strategy since I found out this has a high winning rate compare to my other strategies. It’s just annoying sometimes when HD is present, it goes for bit and then reverses hard. Please help HD traders. Thanks

Are you using HTF for your directional bias?

aud, yes I do top down approach. I am a full time trader. So I have the time to analyze all the markets. I just want to perfect my trading system since now I am implementing HD in my strategy. So far in my backtesting, I found out its best to do HTF to confirm the directional bias if that is what you meant. Once my strategy is 'perfected' with this HD, I will start a portfolio on HD system to see its profitability in the long run. As of now, I am struggling maximise the number of risk to reward ratio for a particular HD setup

i am here not to show how to make perfect hd entry.
but more attention should be paid as to why some hd did not work out. have we back tested that?

the below h4 chart shows the htf support resistance and trend line.
m15 shows why not all hd is created equal. why hd1 worked and why hd2 having difficulties? it may go up later by now it's ranging.

hd by itself works some of the time and cannot solely be depended upon as a pattern to trade.
there are so many other things to watch out for.
for example analyzing mtf market structure, support/resistance, trend line ..........etc

you mentioned that that false hd signals happen mostly at the end of a trend.
why not incorporate RD, since it is a reversal signal and hd is a trend continuation signal.
one only gets the meat in the middle, forgetting about the 2 turning points of a trend.

So do you have any rigid set of rules to follow? If a trader doesn’t have a rule to follow, then they are just simply gambling. I do have set of rules to follow and I do trade like a robot. For example for sell:

I look for HD at M30.
Price must be below Ema200 and Ema50 on M30.
Price must close below middle bollinger band on H4.
Price must be below the middle bollinger band on D1.
I would only enter if M30/H1 gives a pinbar or bearish engulfing for a confirmation to enter with SL just above the recent swing high.

That is my criteria I must have. Ofcourse I must check the price action as well.

So if there is someone here who can atleast show complete rules to add it with HD strategy that would be awesome. Thanks

i follow the following rules. do not use oscillators and moving average other than macd for rd and hd which is optional.
naked chart as far as possible, with support resistance, trend lines, no other indicators.
most important is directional bias and key SR levels for entry and exit.
today trades example:
https://www.forexfactory.com/thread/...8#post13834608
https://www.forexfactory.com/thread/...4#post13834654
so this is very different way of trading from yours.

so short simple rules can be: look for regular divergence first, then hidden divergence around market sturcture, along with directional bias.
i had shown these in the charts above with multi time frames i posted here today.

previously i had also posted for quite a long time in this thread.

another application.

That is what the utter fkn dunce who taught me how to 'tarde' instilled into me. Has to be an algorithmic approach. If your criteria are met, then you must take the trade etc etc....

......there aren't many days that go by without me wanting to strangle that guy for all the red herrings he sold me and all the wild goose chases that he sent me on.

In my view, the markets are too 'organic' (for want of a better expression), to be simply captured by some clunky checklist algorithm. Now, that isn't to say that a team of maths pHd's can't develop some computerised algo that has a clear and provable edge over the market, cos we all know that they can, but for an average Joe, whose neo cortex is capable of juggling around 6-7 different factors at any one time, such an approach is going to be sub-optimal.

Sure, there are tools that one can use to frame the markets and their are strategies for entering and managing risk, but what I have found, is that a trade will work, only if shock - horror, I have basically correctly guessed what the market is going to do next, and that is a matter of defining good trade location......and whilst there are also techniques for doing that, that definitely help, ultimately it boils down to having an ingrained knowledge of how the markets are most likely to behave.....and that there is the crux of any 'edge' the retail trader may have, against the algo's, and against the market makers in modern electronic trading markets.

As we all know, it just isn't as simple as handing some n00b a setup and telling him "here, follow that and you will make money", cos he won't. He will almost certainly lose money, even if he follows the setup to a T. It isn't the handful of simple rules of some Golden Setup that gives the trader his edge, it is the thousands of factors that he instinctively processes without even thinking about it, but which are based on his thousands of hours of experience and subconsciously retained.

.......that is how I don't understand traders who closely guard their 'secret sauce'. Anything that can be scribbled down across a few bullet points on an A4 sheet of paper aint no secret recipe that needs to be closely guarded over...it is just b.s., or a best, a highly personalised idiosyncratic guide.

With that said, if what you do works for you, then who is anyone to question it.

Hi,

There are more than one way to trade the Hidden Divergence pattern. IntheBox is giving you one, I can also suggest some guidelines I wrote down a while ago. You will find my document attached. It might be of interest to you.

You can also follow robust systems like the Elder's Triple Screen. It can look as follow:

1. Select the timeframe you will be trading.
2. Go to the higher timeframe and determine where the trend is going if there is any. You can use the 13 EMA for that purpose. Let's say that the slope of the EMA is up.
3. Get back to your base timeframe and wait for a long Hidden Divergence pattern to develop on an indicator like MACD. When you see one, go to the next lower timeframe and wait for a price action signal to enter. If you don't see a HD pattern, check other pairs.
4. Use a sound money management technique.

Try all methods and chose the one that suits you best. You will have to backtest a lot but it is worth it.