Hidden Divergence

1.As explained in the Divergence section, hidden divergences uasually appear after regular divergences.

2.This means that the general divergence has ended and the existing trend continues due to the effect of the hidden divergence.

3.As shown in the figure, eben if an upward divergence appears in a downward trend and the stock prices rises.

4.If a hidden downward divergence appears at the subsequent high point, the downtrend will continue and the downtrend will be maintained.

5.The above phenomenon occurs frequently in a falling market, so it must be kept in mind.

6.The stock price must rise and surpass the previous high point, which is the starting point of the hidden downward divergence, to invalidate the hidden downward divergence, to invalidate the hidden downward divergence.

7.When trading or when a hidden downward divergence appears likely to occur, it is necessary to respond by reducing volume.

8.The standard for divergences is to check and respond to them rather than predicting them. If you want to predict in advance, you must build overall skills in looking at charts such as trading volume and patterns.