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.

Common questions

What is the Hidden Divergence Swing strategy?

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.

What's the pro tip for trading Hidden Divergence Swing?

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

What indicators does the Hidden Divergence Swing strategy use?

The Hidden Divergence Swing strategy uses the following indicators: RSI (14), MACD, EMA 50. These can be configured directly in AlgoBars AlgoBuilder.

What timeframe works best for Hidden Divergence Swing?

The Hidden Divergence Swing strategy is best traded on the 4H–Daily timeframe. This can be adjusted based on your trading style and market conditions.

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