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General TradingH
Hidden Divergence
A type of divergence between price and an oscillator (such as RSI or MACD) that signals trend continuation rather than reversal. Bullish hidden divergence occurs when price makes a higher low but the indicator makes a lower low, and bearish hidden divergence occurs when price makes a lower high but the indicator makes a higher high.
Example
“BTC made a higher low at $38,000 while the RSI made a lower low, forming bullish hidden divergence that confirmed the uptrend was intact and encouraged traders to add to their long positions.”