Bullish Hidden Divergence vs Bearish Hidden Divergence

15 באוג׳ 2023

Here is an explanation on the Bullish and Bearish Hidden Divergence concepts

Rules are as follows:

Bullish Hidden Divergence

• Happens only in uptrend
  
• Observed on pivot lows
  
• Price makes higher low, whereas indicator makes lower low due to price consolidation. In bullish trend, this is considered as bullish as the price gets a breather and get ready to surge further.
  

Bearish Hidden Divergence

• Happens only in downtrend
  
• Observed on pivot Highs
  
• Price makes lower high whereas oscillator makes higher high due to price consolidation. In bearish trend, this is considered as bearish as the price gets a breather and get ready to fall further.
  
  Watch out for breakouts against the trend.