CCI Hidden divergence trading setup

Hi, here I want to add more example of the hidden divergence trading strategy. I am using Bollinger Bands and CCI indicator for this strategy. This strategy can be used on any timeframe. Higher timeframe give better result. But, since I just look for 10 pips per trade, so I prefer M15 as my favorite.

OK first example is the bearish hidden divergence which is sell signal. In order to SELL we must have a clear down trend on the selected time frame. The down trend is indicated by the Bollinger Bands squeeze downward. See the example below

bollinger bands

The arrow on the chart above shows how the price is forming a downtrend on M15 time frame. I do not enter SELL at this point. The idea is to wait a complete retracement and then we go with the trend after we saw a bearish hidden divergence.

As you see, the price is moving upward and near the upper Bollinger Bands, it creates a bearish hidden divergence.

cci hidden div

Now, I can open SELL and put 10 pip as the target. I am pretty sure that my target will be hit as long as the following conditions are met:

  • Hidden divergence is present
  • Price has made a clear down trend (indicated by BB squeeze downward)
  • The retracement must be hit or near the upper Bollinger Bands. At this point we are ready to enter the SELL.

Try it and hope it goes well as mine. Thank you

Ariel

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