Best Divergence Indicator

The best divergence technical indicator is the RSI indicator, traders can use this technical indicator to check divergence when trading stocks.

The two types of divergence -bullish & bearish divergence are explained below.

RSI Hidden Bullish & Bearish Divergence Stocks Setups

Hidden divergence is used as a possible sign for a stocks trend continuation. Hidden divergence occurs when price retraces to retest a previous high or low.

Hidden RSI Bullish Stock Trading Divergence Setup

Forms when price is making a higher low (HL), but the oscillator is showing a lower low (LL).

Hidden bullish divergence in stocks occurs when there is a retracement in an upwards stock trend.

Stocks Hidden Bullish Divergence - best divergence indicator

This setup confirms that a retracement move is complete. This divergence indicates underlying strength of an upward stock trend.

Hidden RSI Bearish Stocks Trading Divergence Setup

Forms when price is making a lower high (LH), but the RSI is showing a higher high (HH).

Hidden bearish divergence in stocks occurs when there is a retracement in a downward trend.

Stocks Hidden Bearish Divergence - best divergence indicator

This stocks divergence setup confirms that a retracement move is complete. This stocks divergence indicates underlying strength of a downward stock trend.