What’s a hidden divergence?
Divergences not only signal a potential trend reversal but can also be used as a possible sign for a trend continuation (price continues to move in its current direction).
Always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then good for you!
Hidden bullish divergence happens when the price is making a higher low (HL), but the oscillator is showing a lower low (LL).
**Hidden Bullish Divergence**
This can be seen when the pair is in an UPTREND.
Once price makes a higher low (HL), look and see if the oscillator does the same.
If it doesn’t and makes a lower low (LL), then we’ve got some hidden divergence in our hands.
**Hidden Bearish Divergence**
Lastly, we’ve got hidden bearish divergence.
This occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH).
By now you’ve probably guessed that this occurs in a DOWNTREND.
When you see hidden bearish divergence, chances are that the pair will continue to shoot lower and continue the downtrend.
***If you’re a trend follower, then you should dedicate some time to spot some hidden divergence.***
If you do happen to spot it, it can help you jump in the trend early.
Keep in mind that regular divergences are possible signals for trend reversals while hidden divergences signal trend continuation.
Regular divergences = signal possible trend reversal
Hidden divergences = signal possible trend continuation
Diver
* กระทู้นี้สามารถใช้งานได้เฉพาะผู้ที่มี Link นี้เท่านั้นค่ะDivergences not only signal a potential trend reversal but can also be used as a possible sign for a trend continuation (price continues to move in its current direction).
Always remember, the trend is your friend, so whenever you can get a signal that the trend will continue, then good for you!
Hidden bullish divergence happens when the price is making a higher low (HL), but the oscillator is showing a lower low (LL).
**Hidden Bullish Divergence**
This can be seen when the pair is in an UPTREND.
Once price makes a higher low (HL), look and see if the oscillator does the same.
If it doesn’t and makes a lower low (LL), then we’ve got some hidden divergence in our hands.
**Hidden Bearish Divergence**
Lastly, we’ve got hidden bearish divergence.
This occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH).
By now you’ve probably guessed that this occurs in a DOWNTREND.
When you see hidden bearish divergence, chances are that the pair will continue to shoot lower and continue the downtrend.
***If you’re a trend follower, then you should dedicate some time to spot some hidden divergence.***
If you do happen to spot it, it can help you jump in the trend early.
Keep in mind that regular divergences are possible signals for trend reversals while hidden divergences signal trend continuation.
Regular divergences = signal possible trend reversal
Hidden divergences = signal possible trend continuation