hidden divergence

Hidden divergence is a crucial concept in technical analysis. Indicating a potential trend continuation rather than a reversal. Unlike regular divergence, which signals a potential reversal in price direction. Hidden divergence suggests that the prevailing trend is likely to continue. This divergence occurs when the price forms higher highs or lower lows. While the corresponding oscillator indicator forms lower highs or higher lows. Traders often use it to confirm the strength of an existing trend. Identifying opportunities to enter trades in the direction of the trend. By recognizing it patterns and incorporating them into their analysis. Traders can make more informed decisions and enhance their trading strategies.