Hidden divergence?

SanMiguel

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Just been reading up about this.
I don;t see the difference between standard bearish divergence and hidden bullish divergence.
Bearish divergence is described as Higher highs while the indicator shows lower highs basically this shape <

Hidden bullish is described as higher lows and indicator shows lower lows.
This shape: <

It's the same thing isn't it? Higher lows are usually coupled with higher highs on the same chart.
Hidden Divergence Report

Here's 1 example:
HiddenDivergence.JPG


I don't understand why you would look at that picture and say, oh it's higher lows on the PA and lower lows on the indicator, therefore bullish hidden DV and the trend will continue.

Why wouldn't you say, oh it's higher highs and there's 3 peaks in the indicator each lower than other. It's going to reverse.
HDV.JPG


Also, the pattern in Fig.1 (Classic) is the same as Fig.3 (hidden) in the article :confused:

Even in this article, Fig 1 and 2 show the same thing.
http://www.earnforex.com/forex_e-books/beginner_forex_trading/Reverse_Divergence_and_Momentum.pdf

Fig 1: Trend is in 1 direction Up.
price is higher higher higher, indicator is lower lower lower normal divergence.
Fig 2: Trend is in one direction down:
price is lower lower, indicator is higher higher. To me this is normal divergence as with fig 1 but apparently it's reverse divergence and the trend will continue?
Lost :confused::confused:
 
It's ever so simple.

Without stating the obvious, momentum divergence represent changes in price over "x" bars compared to momentum over "x" bars "y" bars ago.

Therefore, you will often find Regular Divergence (lower tops, higher bottoms) as well as Hidden Divergence (higher tops, lower bottoms).

Analysis of Demand/Supply, Trend and Price Action comes before divergence patterns.

HTH
 
HiddenDivergence.JPG


On the above, when I see 6 go lower than 5 on the indicator, but price checked as though at resistance - that would have indicated to me that it was going to reverse pretty soon.
The indicator is showing a downward trend both on the peaks and thr troughs whilst the PA is going upward. Therefore it looks like a bearish reversal not like the bullish trend is going to continue

5,6,and 7 on the above is the same as AB below yet the description of each chart is different.

example.JPG
 
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