The Hidden Divergence (1) -- Bullish Divergence

 Stock price and indicator have hidden divergence. This maybe means the price will extend the trend.

Hidden divergence, price and stochastic

Tips:

• This is forex, not a stock. But the tips should apply as well.
• 2014 Jun 6, price and stochastic have a hidden divergence.
• Stochastic is to value price momentum. Also can be treated as if stock overbought or oversold.
• The divergence is a hidden divergence. A hidden divergence is for a price higher lower, but indicators are lower low. Or for a price lower high but indicators are higher high.
• The hidden divergence means the price will continue the trend.
• Here the trend is uptrend, means probably price will go up.
• 2014 jun 6, stochastic showed oversold, possibly price bounce back.
• The price also dropped almost on 50 ma, possibly price bounce back.
• It is below 200 ma, should bias on downtrend. But here is a buy hint, so can buy , but not a very strong one.

 Zoom in:

RSI hidden divergence

• The arrows show RSI hidden divergence.
• Price is higher low, but RSI is lower low. One factor to long it.
• On 2017 dec 4 or so, price falls below 50 ma, but the momentum stops. The stock uses three green bar to stand above 50ma again. Consider this is a buy hint.

MACD hidden divergence

• The long arrows show MACD hidden divergence.
• Price is higher low, but MACD is lower low. One factor to long it.
• Here the MACD hidden divergence is double hidden divergence. That means both MACD lines and MACD histograms are hidden divergence.
• The price hit 200 ma on 2015 may 6 or so, and stop falling further in the next days. More chance to bouce back after price breaks out this little channel. The blue arrow is the buy point. On that day the stock breaks out with volume also up.