Hidden RSI Divergence

Bullish Hidden Divergence

  • Price = Higher low

  • RSI = Lower Low

Indicates underlying strength. Good entry or re-entry. This occurs during retracement in an uptrend. Nice to see during the price retest of previous lows to consider buying dips. A lot of traders will use hidden Bullish Divergence to delineate and cancel a previous Bearish Divergence signal. And then some traders choose not to use hidden divergences at all - hence the reason we defaulted them to off. If you would like to add Hidden Divergences you can do so under settings of the indicator.

Bearish Hidden Divergence

  • Price = Lower High

  • RSI = Higher Low

Indicates underlying strength. Good entry or re-entry. This occurs during retracements in an uptrend. Nice to see during the price retest of previous highs to consider selling the rally. A lot of traders will use hidden Bearish Divergence to delineate and cancel a previous Bullish Divergence signal. And then some traders choose not to use hidden divergences at all - hence the reason we defaulted them to off. If you would like to add Hidden Divergences you can do so under settings of the indicator.

Last updated