How Does a “Hidden Bullish Divergence” Differ from a Standard Bearish Divergence?
A standard bearish divergence (used to predict a drop) is when price makes a higher high, but the indicator (like RSI) makes a lower high. A hidden bullish divergence (used to predict a trend continuation) is when the price makes a higher low, but the indicator makes a lower low.
This suggests that momentum is secretly strengthening within the existing uptrend.