Hidden Divergence
Hidden divergence is a continuation chart pattern. As we said in our earlier post about regular divergence, it is a leading indicator. Hidden divergence normally occurs in existing trends and indicate that the trend may continue.
Hidden divergence occurs when oscillator makes a higher high or higher low and price don't.
Bullish hidden divergence
Bullish hidden divergence occurs when price makes a higher low and indicator ( oscillator ) makes a lower low. Normally prevailing trend ( bullish ) continues after that.
Bearish hidden divergence
Bearish hidden divergence occurs when price makes a lower high and indicator ( oscillator ) makes a higher high. Here also prevailing trend ( bearish ) continues after this.
Video shared below is from our channel share market Malayalam about hidden divergence. I have tried to explain it in simple language with chart example. Please check it for more chart examples.
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