I did not take all trading setup written on this blog. I am not a full time trader, so sometimes I missed the divergence signals. But I like to write any divergence signal on any pairs and time frames in order to sharpened my own trading system. This blog is more like a divergence trading journal for me.
AUDUSD has made a down trend on M15 time frame. I am a scalper and I am trying to always follow the trend for all my trades except if I see a clear normal divergence then I trade against the trend and hope the divergence will drive the price to reverse. To follow the trend, Hidden divergence is the best signal for me.
On a bearish hidden divergence, price has made lower high but the indicator (MACD Histogram on this case) made higher high. This discrepancy between price and indicator is called hidden divergence. To trade hidden divergence we can utilize a trendline breakout or candlestick pattern as confirmation. Put your stop loss accordingly.
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