hidden rsi divergence

Hidden RSI divergence is a continuation pattern that indicates the prevailing trend is likely to resume after a temporary correction. In a bullish hidden divergence, the price forms a higher low while the RSI forms a lower low, suggesting that buying strength remains intact despite short-term weakness. In a bearish hidden divergence, the price forms a lower high while the RSI forms a higher high, indicating that selling pressure is still dominant despite a temporary rally. Hidden RSI divergence is most reliable when it appears in the direction of the existing trend and is confirmed by strong support or resistance levels, trendlines, or a breakout/retest setup.