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2.2 - Hidden Divergence

  • Hidden divergence is a continuation signal
  • Price must make a HH/HL and RSI must make a LL/LH
  • Just like all indicators and signals, it should be used as confluency, not a trigger
  • Can only be used after a pivot, until a pivot is confirmed, then it is only potential hidden divergence
  • A powerful use of this is to look for potential hidden divergence then go to a lower timeframe and look for a reversal

Sometimes the price can drop very quickly, sometimes from bearish divergence which can cause fake hidden bullish divergence

It's best to look for regular divergence on a small timeframe and hidden divergence on a large timeframe

 

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