What is the difference between hidden divergence and regular divergence?

The main difference between Hidden Divergence and Regular Divergence is that Hidden Divergence is a sign of trend continuation, whereas Regular Divergence is a sign of trend reversal. Hidden divergence occurs when an oscillator or momentum indicator makes a higher high or lower low, but the price does not.

What is'mild' divergence?

To complicate matters even further, you can also have ‘mild' divergence, where a disparity exists but it is not as strong. The main difference between Hidden Divergence and Regular Divergence is that Hidden Divergence is a sign of trend continuation, whereas Regular Divergence is a sign of trend reversal.

What are the different types of divergence?

The two main types of divergence are regular and hidden divergence. Each type will either have a bullish bias or a bearish bias. This is a useful confirmation of waning market momentum that precedes a directional shift in the market that happens with regular divergence is seen between the indicator and price action.

Are divergences a signal for trend reversals?

Keep in mind that regular divergences are possible signals for trend reversals while hidden divergences signal trend continuation. In the next lesson, we’ll show you some real-world examples of when divergences existed and how you could have traded them.