Qazi Forex Tips
In this lecture
- What hidden divergence is
- Hidden bullish divergence
- Hidden bearish divergence
- RSI basics: 14 periods, 30 and 70
Lesson notes
Hidden vs regular
Regular divergence warns of a reversal. Hidden divergence appears during a pullback and suggests the trend will continue.
The two signals
- Hidden bullish: in an uptrend, price makes a higher low while RSI makes a lower low.
- Hidden bearish: in a downtrend, price makes a lower high while RSI makes a higher high.
A rule set to test
- Trend confirmed by structure on the higher timeframe.
- Pullback into support (uptrend) or resistance (downtrend).
- Hidden divergence between the last two swings.
- Entry after a rejection or momentum candle in the trend direction.
- Stop loss beyond the pullback swing; target the last high (uptrend) or low (downtrend) or more.
Backtest these rules on your own pair and timeframe before using real money.
Khulasa (Roman Urdu / Hindi)
- Hidden divergence: pullback ke baad trend jari rehne ka ishara.
- Hidden bullish: price higher low, RSI lower low.
- Hidden bearish: price lower high, RSI higher high.
- Sirf trend ki taraf, level par, candle confirmation ke saath.
Questions
What is hidden divergence?
A divergence during a pullback that signals the trend is likely to continue, not reverse.
What is hidden bullish divergence?
In an uptrend, price makes a higher low while the RSI makes a lower low.
What is hidden bearish divergence?
In a downtrend, price makes a lower high while the RSI makes a higher high.
Is hidden divergence better than regular divergence?
It trades with the trend, which many traders find safer; regular divergence tries to catch reversals.
Which indicator is best for divergence?
RSI is the most common; MACD and Stochastic can also show divergence.
What RSI settings are used for divergence?
The default 14 periods is the most common.
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