Greeting guys,
Iām now at the last chapter of Babypip school but I intend to go through the entire course one more time thoroughly to ensure I understand every single lesson taught before I considers myself a babypip graduate.
Anyway, I would like to know, what are the underlying rationales behind hidden divergence? While regular divergence seems pretty straight forward as prices may be making LL or HH but the momentum supporting their movement is losing steam.
But in hidden divergence despite increasing momentum making new highs/lows, prices still failed to make HH/LL. This may signal buyers/sellers have enough will not likely test the levels again or the opposite market pressure seems stronger but for some reason it only appears on price action but not on indicator?