I found a nice setup on GBPUSD 27 February 2013 on H1 timeframe. This trade setup is based on Hidden Divergence signal. See how this hidden divergence works below
See how GBPUSD has made a lower high and the stochastic show a higher high. This condition is called as bearish hidden divergence. I usually draw a trendline connecting lows before opening a SELL trade. See how GBPUSD made a nice downward movement after the trendline breakout. I got about 50 pips in this single trade.
