Just summarized a little trick for technical analysis—many people actually can't tell the difference between the two types of divergence.

Most people only know that Regular Divergence is a reversal signal, but in fact, Hidden Divergence is the key I use for bottom fishing or topping out. This signal is especially suitable for finding entry points during a pullback.

First, let's talk about Hidden Bullish Divergence. In an uptrend, the price pulls back to create higher lows, which looks healthy, right? But at the same time, the RSI or MACD makes lower lows. What does this indicate? The indicator has cooled off, resetting from an oversold condition, but the price structure remains strong. This is exactly when the bulls are gathering strength, preparing for another upward breakout.

Hidden Bearish Divergence is the opposite. In a downtrend, the price bounces to create lower highs, but the indicator makes higher highs. Don't be fooled by this rebound; the bears are still fully in control, just accumulating strength for the next wave down.

In simple terms, Hidden Divergence is a strong signal for trend continuation. Do you often miss entry opportunities during a pullback? Learning to recognize hidden divergence allows you to jump in ahead of others who are still hesitating.

Of course, charts are just references, not investment advice. Always think carefully before making decisions.