Bullish/Bearish Hidden Divergence Strategy

Unlike Divergence and Convergence that show us the reversal Prices, Hidden Bullish and Bearish Divergence indicate continuation trend.

Hidden Bullish Divergence can be detected on uptrend after connecting valleys of market price by an indicator such as MACD, RSI, Stochastic or Awesome Oscillator.

Hidden Bearish Divergence can be indicated by connecting peaks of a Bearish trend of market price by an indicator. Bullish and Bearish Hidden Divergence is a powerful confirmation on agreeing direction with current trend orientation.

Due to its accurate and sound signals, traders can combine Hidden Bullish and Bearish Divergence with other powerful strategies to increase the success rate of their orders.

Hidden Bullish/Bearish Divergence Strategies

Type I

Hidden Divergence with Classic Patterns: If a Bullish/Bearish Divergence appears on the spot where Head and Shoulders or Double Top/Bottom formed, then a Trading Signal will be generated.

Type II

Hidden Divergence with Divergence and Convergence: Hidden Bullish/Bearish Divergence detects a continuation signal agreeing with the long trend on the spot that Divergence or Convergence indicates reversal direction against the current small swing, which is a small return from the long trend.

Type III

Hidden Divergence with Reversal Candlestick Patterns: The Hidden Bullish/Bearish Divergence on the long price trend concurrent with a powerful reversal candlestick pattern that shows reversal direction against small swing, which proceeded toward opposite direction of the long trend, will generate credible trading signals.

Hidden Divergence Strategy

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