In a positive hidden divergence the RSI oscillator makes a bottom lower than the previous low, but the price chart cannot make a price lower than the previous bottom. When creating a positive hidden divergence, the probability of the price chart going up increases.
Interpretation of positive hidden divergence: due to the increase in the power of sellers compared to the previous valley, the price has not decreased much compared to its previous floor or valley, which can be an indication of the demand to buy the desired currency or share at the current price.
Interpretation of positive hidden divergence: due to the increase in the power of sellers compared to the previous valley, the price has not decreased much compared to its previous floor or valley, which can be an indication of the demand to buy the desired currency or share at the current price.
A positive normal divergence is formed when a valley or a floor lower than the previous floor is created in the price chart, but the oscillator fails to create a lower floor. At the time of creating a positive normal divergence, we can expect the price to have an upward movement.
Interpretation of a positive normal divergence: the price has fallen more than its previous floor (creating a lower price floor). This should increase the strength of sellers (the RSI indicator will show a lower number), but the RSI oscillator shows a decrease in the strength of sellers.This issue can increase the possibility of price growth.