Massive hidden bearish divergence on the Shib weekly
This is a type of divergence most people don’t seem to notice, and it also can be difficult to spot. On a downtrend, you’re typically looking for a lower low in price but a higher low in the oscillator. That is the bullish divergence indicating a reversal is near. Typically traders will not be looking at the highs of the oscillator during a downtrend. Here we see a lower high in price but a higher high in the oscillator. Common sense would say that too must be a sign of a bullish reversal, but in reality that is a hidden divergence signaling a continuation of the trend. On a bullish trend, a higher low in price corresponding to a lower low on the oscillator is also a called a “hidden bullish divergence”.
Hidden divergences signal trend continuation rather than trend reversal. I just wanted to point what I see on the weekly out to y’all, and to remind everyone to stay safe. Thanks.
Hidden divergences signal trend continuation rather than trend reversal. I just wanted to point what I see on the weekly out to y’all, and to remind everyone to stay safe. Thanks.
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