Hidden Bullish & Bearish Divergence PDF

Indices Hidden Divergence Tutorial PDF

Hidden divergence is used as trend continuation signal after the price has retraced. hidden divergence is a signal that the original market trend is resuming. Hidden divergence the best divergence setup to trade because it gives a signal that is in same direction as that one of the continuing stock trend.

Divergence Scanner

This setup happens when stock price is making a higher low (HL), but the oscillator (indicator) is showing a lower low (LL). To remember them easily think of them as W shapes on Chart patterns. It occurs when there's a retracement in an upward trend.

The example explained and illustrated below shows an image of this indices formation, from the image the price made higher low (HL) but the technical indicator made a lower low (LL), this displays that there was a divergence trade signal between the price & indicator. This signal highlights that soon the market upward trend is going to resume. In other terms it displays this was just a retracement in an upward trend.

Indices Hidden Bullish Divergence - Hidden Divergence Scanner - Indices Trading Divergence Guide

This hidden bullish divergence setup confirms that a price retracement move is complete & signals underlying strength of a upward trend.

Divergence Scanner

Indices hidden bearish divergence setup happens when stock price is making a lower high ( LH ), but the indicator is showing a higher high ( HH ). To remember these set ups easily think of them as M-shapes on Stock Chart patterns. Hidden bearish divergence forms when there is a price retracement in a downward stock trend.

The hidden bearish divergence example explained and illustrated below shows an example of this setup - the price made lower high (LH) but the indicator made a higher high (HH), which shows a divergence between the price and the indicator. This signals that soon the market downward trend is going to resume. In other words this divergence setup shows that this was just a retracement in a downward trend.

Indices Hidden Bearish Divergence - Hidden Divergence Scanner - Indices Trading Divergence Guide

Hidden bearish divergence confirms that a price retracement move is complete & signals underlying strength of a downward stock trend.

NB: Hidden divergence is the best type of trade divergence set up to trade because it gives a signal that's in same direction as that of the current market trend, thus it has a high risk to reward ratio. Hidden divergence set up provides for the best possible entry and exit for stock trades.