Forex Trading With Hidden Divergence
The next lesson is forex trading with hidden divergence, if we have previously discussed about regular divergence which is very suitable to see a reversal signal, HIDDEN DIVERGENCE is very suitable for seeing continuation signals.
Like regular divergence for hidden divergence we can find it when prices tend to rise (uptrend) so we call it Bullish Hidden Divergence or when it tends to move down and we call it Bearish Hidden Divergence.
Bullish Hidden Divergence occurs when the price forms a Higher Low (HL) but the oscillator forms Lower Low (LL). And if you encounter this signal when the price in the Uptrend condition it is possible that the price will continue to move which tends to rise.
And here is an example of the image of the Bearish Hidden Divergence signal formation process in question,
And this is the last type that is Bearish Hidden Divergence that is formed when prices form Lower High (LH) but the oscillator forms a Higher High (HH). And when this signal is formed you must already know that this signal occurs when the condition is bearish. And when you see this signal it can be possible that the price movement that was previously a downtrend will continue towards the bottom.
Here is an example of the formation of the Bearish Hidden Divergence signal in question, bro 🙂
Now you know whether it is Regular Divergence and Hidden Divergence and how both are formed.So now it’s time you know how to use these two signals as a forex trading strategy. So don’t go anywhere, please follow the next lesson 🙂