The Hidden Divergence (2) -- Bearish Divergence

  Stock price and indicator have hidden divergence. Price is lower high, but indicator is higher high

 

 

Hidden divergence, price and stochastic

Tips:

• This is forex, not a stock. But the tips should apply as well.
• 2013 Nov 5, 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. 
• The hidden divergence means the price will continue the trend.
• Here the trend is downtrend, means probably price will go down.
• 2013 Nov 5, stochastic showed overbought, possibly price go down.
• The price also touched almost 50 ma, possibly price reverse down.
• The price also touched almost resistance trend line, possibly price reverse down.
• It is below 200 ma, should bias on downtrend. Plus this hidden divergence, it is a sell hint.

 Zoom in:

 

 

 

 

 

 

 

 

 

RSI hidden divergence

 

• The arrows show RSI hidden divergence.
• Price is lower high, but RSI is higher high. One factor to short it.
• On 2008 feb 1 or so, price touches 200 ma, and in a downtrend, this can be considered as a  sell hint.

 

 

 

 

 

MACD hidden divergence

 

• The arrows show MACD hidden divergence.
• Price is lower high, but MACD is higher high. One factor to short it.
• Here the MACD hidden divergence is double hidden divergence. That means both MACD lines and MACD histograms are hidden divergence.