Help in Divergences - Regular and Hidden - Can they appear together?

babymush

Active member
221 1
Please take a look at this chart that I have attached.

There were 2 divergences appearing:

1) Regular Bullish Divergence
Price: Lower Low
Osc: Higher Low

Indicating: BUY (Reversal of Trend)

Then another divergence occured

2) Hidden Bearish Divergence
Price: Lower High
Osc: Higher Higher

Indicating: Sell (Trend Continuation)


I understand that there should not be 2 divergence forming at once

Did I understand something wrongly?
 

Attachments

bbmac

Veteren member
3,584 787
Please take a look at this chart that I have attached.

There were 2 divergences appearing:

1) Regular Bullish Divergence
Price: Lower Low
Osc: Higher Low

Indicating: BUY (Reversal of Trend)

Then another divergence occured

2) Hidden Bearish Divergence
Price: Lower High
Osc: Higher Higher

Indicating: Sell (Trend Continuation)


I understand that there should not be 2 divergence forming at once

Did I understand something wrongly?
The divergences didn't form together, I think it's a 30min chart from memory so the hidden divergence formed 10hrs after the regular divergence. I really don't understand the question you are asking here.

Very often a regual divergence Bullish or Bearish will indicate a pullback or complete reversal in trend...in this instance a Re-entry set-up appeared at a LH on this t/f into the next t/f's (+) trend, indicating that it was a pullback and that the lows around the area of the regular divergence that indicated said pullback may well be at least tested again, if not see a with trend follow thru to new lows.
 

babymush

Active member
221 1
Ah! I understand! Thank you for explaining. I did not know the time frame but when you explained it this way, I see that 2 divergences can be formed one after another with one signaling a pullback and the other a re entry.

I keep thinking it is a complete reversal.

Thank you
 
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