Hidden divergence signals trend continuation. When price makes a higher low but RSI/MACD makes a lower low, it indicates the underlying trend is strong.
Indicators Used
RSI (14)MACDEMA 50
Rules
📈 Bullish Hidden Divergence
- Price makes a higher low (uptrend intact)
- RSI makes a lower low (hidden bullish divergence)
- Price must be above EMA 50
- Enter on bullish candle after divergence confirms
📉 Bearish Hidden Divergence
- Price makes a lower high (downtrend intact)
- RSI makes a higher high (hidden bearish divergence)
- Price must be below EMA 50
- Enter on bearish candle after divergence confirms
💡 Pro Tip
Hidden divergence on the daily chart combined with regular divergence on the 4H chart creates the highest probability swing entry.