Compared to regular divergences, which  signal a trend reversal , hidden divergences are  sign of a possible trend continuation. Thus, a hidden divergence occurs when there is an established trend. For now, let’s talk about the hidden bullish divergence.

Hidden Bullish Divergence:

Condition:

1) The price and indicator are in an uptrend.

A hidden bullish divergence occurs when:
1) The price continues to make higher lows
2) the indicator makes a series of lower lows

This indicates that the uptrend will continue . This is specially useful when the price of the stock that you are holding pulls back. A higher low  on the price and a lower low on the indicator tells you that you should   buy the dips.

For example: MIC (Minerales Industrias Corporation)

michiddenbulldiv

Check this out. ANI (Agrinurture Inc. ) hourly chart. Is this a hidden bullish divergence too?

anihiddenbulldiv

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