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.

What is'mild' divergence?

This can be either bullish or bearish. It occurs when price makes a higher high or lower low and the momentum indicator or oscillator will do the opposite (make a higher high if price makes a lower low and vice versa). To complicate matters even further, you can also have ‘mild' divergence, where a disparity exists but it is not as strong.

How to trade hidden bullish divergence?

One of the ways to trade the hidden bullish divergence is shown below. The entry of the trade is placed near the interim peak of the hidden bullish divergence. The stops are placed at the higher low in price. Following this, a 1:1 and 1:2 risk reward set up positions are taken.

What is hidden bearish divergence?

Lastly, we’ve got hidden bearish divergence. This occurs when price makes a lower high (LH), but the oscillator is making a higher high (HH). By now you’ve probably guessed that this occurs in a DOWNTREND. When you see hidden bearish divergence, chances are that the pair will continue to shoot lower and continue the downtrend.