In Tradovate Automation, recognizing powerful setups can give you an edge. One such setup is hidden bearish divergence, a continuation signal often missed by traders. This post will show you how to spot it, trade it, and automate trades on Tradovate using tools like PickMyTrade.
What Is Hidden Bearish Divergence in Tradovate Automation?
In a downtrend, hidden bearish divergence happens when:
- Price makes a lower high
- RSI makes a higher high
This shows that momentum is weakening despite a minor pullback in price. It’s a key signal that the sellers are still in control and a drop may follow.
In automated trading, this setup can be programmed to trigger short entries with tools like PickMyTrade, connected directly to Tradovate.
How to Identify Hidden Bearish Divergence on Tradovate
Here’s what to look for:
- A clear downtrend on the chart
- A lower high in price
- A higher high on the RSI
Once you spot this, you can build an automated alert in TradingView and send it to PickMyTrade to execute it on Tradovate instantly.
How to Trade the Setup with Automation
Use this basic trade plan with Tradovate automation:
📥 Entry:
Place a short entry after a bearish candle closes confirming the divergence.
🔒 Stop Loss:
Just above the recent swing high.
🎯 Take Profit:
Set your target at the next support zone, with a 2:1 reward-to-risk ratio.
💡 Pro Tip: Use TradingView to trigger alerts and let PickMyTrade handle execution on Tradovate with no manual clicks.
Example: Executing RSI-Based Divergence with Tradovate Automation
- Spot hidden bearish divergence
- Set up TradingView alert when RSI > previous RSI high
- Connect alert to PickMyTrade
- Auto-execute short on Tradovate when conditions are met
This allows you to catch momentum while staying hands-free.
Why It Works in Automated Futures Trading
- RSI + Price tell you the sellers are not done
- Trend continuation means higher probability
- Automation removes emotion and ensures speed
With Tradovate automation using PickMyTrade, you can trade smarter with structure.
Conclusion
Hidden bearish divergence is one of the most underrated continuation setups. When paired with automated execution through Tradovate, it becomes a sharp tool for short trades in futures markets.
Whether you’re trading S&P 500, NASDAQ, or commodities — learning to spot hidden bearish divergence and using automated trading tools like PickMyTrade gives you structure, speed, and clarity.
Also Checkout: Connect Tradovate with Trading view using PickMyTrade
