Hidden divergence USDCAD signaled a long entry in this forex pair that resulted in a nice profit this morning.

Hidden Divergence USDCAD

Using both the 15 minute and 30 minute chart combination, price was at the ATR (on both timeframes).  Analyzing the Stochastics revealed a hidden divergence pattern forming with a reversal bar to the upside.  Additionally, for those that use volume analysis, the sellers decreased on the bar that touched the ATR (also known as volume divergence on the lows).

Hidden Divergence USDCAD

Although Nadex was closed today for President’s Day, it was a nice trade setup for trading the spot forex market, especially with a low risk (stop being placed under the ATR).

This is also an excellent example of using the easiest TradeFlow Analysis Group trade.  As the chart shows, there were at least 2 ATRs underneath price indicating that the timeframes were aligned to the upside.  Price retraces back to the white ATR, with the Stochastics confirmation indicating a long entry (ATR was below price which means you can only go long).

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