What is bearish divergence?

Bearish divergence is when the price of an asset reaches higher highs, but the momentum indicator or oscillator shows lower highs. The discrepancy between price action and the momentum indicator indicates that the momentum in the current price trend is slowing and we could see a fall in price about to occur soon. What Is Bearish Hidden Divergence?

What is bullish divergence?

Bullish divergence is the opposite of bearish divergence. Bullish divergence occurs when the price is creating lower lows, but the momentum indicator is showing higher lows, indicating a weakening of the trend and a potential reversal. What Is Bullish Hidden Divergence? Again, it is the opposite of hidden bearish divergence.

How do you confirm a hidden bearish divergence?

We confirm a hidden bearish divergence when the price shows lower tops, and the indicator gives higher tops. The regular divergence pattern is used to forecast an upcoming price reversal. When you spot a regular bearish divergence, you expect the price to cancel its bullish move and switch to a downward movement.

What is hidden divergence?

Hidden divergence occurs when an oscillator or momentum indicator makes a higher high or lower low, but the price does not. It usually occurs during price consolidation or corrections and can be used as a continuation pattern or signal. What Is Bearish Divergence?