Question
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Can there be any hidden divergence?
1 Answer
<p id="isPasted">Yes. Hidden divergence occurs when the price action and a technical oscillator (like RSI, MACD, or Stochastic) move in opposite directions while confirming the continuation of an existing trend. </p><p>Unlike regular divergence which signals a trend reversal, hidden divergence signals trend continuation. </p><p><strong>π Hidden Bullish Divergence (Uptrend Continuation)</strong></p><ul><li>Price Action: Makes a higher low (HL).</li><li>Oscillator: Makes a lower low (LL).</li><li>Meaning: The indicator shows stronger selling pressure, but the price refuses to drop below its previous low. Bulls remain in control. </li></ul><p><strong>π Hidden Bearish Divergence (Downtrend Continuation) </strong></p><ul><li>Price Action: Makes a lower high (LH).</li><li>Oscillator: Makes a higher high β¦</li></ul>