Here is an explanation on the Bullish and Bearish Hidden Divergence concepts
Rules are as follows:
Bullish Hidden Divergence
Happens only in uptrend
Observed on pivot lows
Price makes higher low, whereas indicator makes lower low due to price consolidation. In bullish trend, this is considered as bullish as the price gets a breather and get ready to surge further.
Bearish Hidden Divergence
Happens only in downtrend
Observed on pivot Highs
Price makes lower high whereas oscillator makes higher high due to price consolidation. In bearish trend, this is considered as bearish as the price gets a breather and get ready to fall further.
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