Hidden Divergence

Hey guys, I’m new on babypips and this is my fist post :35: . So I’m learning in School of Pipsology and I’m in High School (Grade 9), I just learned about Divergences so I wanted too look in the market if I could spot one and actually there is one, EUR/USD 4h with the stochastic indicator. When the EUR/USD is doing lower high, the indicator is doing Higher High, this is a hidden bearish divergence.


What do you think about it ? (Do I learn good?) Can we make some good pips from this (maybe) bearish trend ?

Please don’t be disappointed, but if you use a stochastic with such short settings as that, you’re going to see them very often, and their reliability is in inverse proportion to their frequency.

They also mean quite a bit less with stochastics than with many other indicators.

Do you understand exactly [I][U]what[/U][/I] “stochastics” are measuring and displaying? If you think it through, I suspect you’ll agree that it’s not too significant?

Whether you can make anything from that undoubtedly bearish trend has nothing to do with what your stochastic is displaying.

And welcome to the forum. :slight_smile:

Of course I won’t be :slight_smile: I’m just learning and you helped me thank you !

Its really nice to see someone taking the time to study at thr school rather than looking for a quick fix or holy grail.
Keep studying, keep asking questions, its what BabyPips is about