i don’t understand why hidden divergence shows increase in momentum. for example if price is making higher high and higher low but the MACD is making higher high and lower low what does this lower low in MACD mean? doesn’t this mean the downtrend is gaining momentum? or i means uptrend is losing momentum faster than the price is moving.? that is what i take from hidden divergence which should be opposite and cause reversal instead of trend continuation.
Hidden divergence shows trend continuation. Please do the babypips course and you’ll learn all this. Bye
Most traders who use MACD look for positive or negative divergence.
Positive divergence is when price lows are falling but MACD lows across the same dates are rising. This suggests price will probably stop falling in the near future.
Negative divergence is when price highs are rising but MACD lows across the same dates are falling. This suggests price will probably stop rising in the near future.
