Hidden Divergence

Divergence, which is a term that technicians use when two or more averages or indices fail to show confirming trends, is one of the mainstays of technical analysis. Here’s a new way to use oscillators and divergence as well as methods to locate entry levels during a trend. Many traders only learn to recognize the type of non confirmation that occurs at market tops and bottoms, which is the classic divergence. But there are other forms of non confirmation the author calls hidden divergence (HD) that offer additional profit potential.