CASE STUDY 1 - Positive Divergence
We observe a positive divergence in opposite to negative/downward movement of price. In case of regular positive diveregnce ( where moves upward making higher lows , opposite in direction to price's lower low movement , it is better to take a long position. Well that worked and the price bounced back.
Case Study 2 - Hidden Divergence
Here as we see a positive hidden divergence where the price is making higher lows and the is making lower lows. No that hidden divergence indicates " Trend Continuation ". So the price kept moving up and up and may move to the upper parallel line. The price may make a downward move once it reaches the upper line.
Please correct me if i am wrong.
Will it continue or move down ?