Hidden Divergence

Hidden divergences are the opposite of classic divergences. Classic divergence looks for lower low prices accompanied by higher indicator values at price bottoms and higher high prices accompanied by lower indicator values at price tops.

Hidden divergences, on the other hand, seek higher price lows accompanied by lower indicator values during up moves and lower price highs accompanied by higher indicator values during down moves.

Most hidden divergences signal continuation moves in the direction of the prevailing trend.


Download here (244.51 KB)