I think it's one inside another divergence (inside one speeds up) so it works like an additional confirmation of the signal. It is important that you can notice subtle patterns, a good example how true trading edge develops - finding hidden gems.
Yellow arrow identify as regular bullish Divergence. The RSI average low_close value higher than price chart average low_close prices.
Which have a divergence in Market Structure.
Lower lows close (fractal swing lows/peaks) on chart price. While RSI Structure higher Lows close value (Higher lows /fractal swing lows/troughs )
The structure at 16 price level would issue the Starting point to identify the divergence as hidden Divergence building up
Hidden Divergence is a mean reversion where oscillator and price return to structure . If one break structure and other don't then it's hidden Divergence. Look for the supply/demand zone to enter trade
The red Arrow on RSI indicator don't match the Red Arrow on Chart base on market structure.
The hidden Divergence occurs already if u place the RSI red arrow 1 step back to the lower structure and at the first point of the red arrow u would see the bearish hidden Divergence. As RSI broke structure swing high but price never break the swing high on chart .(use the scroller to see)
This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.