# Divergence Detection

<mark style="color:$info;">The</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**Divergence Detection**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">feature enhances the oscillator’s predictive capabilities by identifying areas where momentum diverges from price movement, which often signals reversals:</mark>

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Divergence Detection
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## **Normal Divergence**&#x20;

<mark style="color:$info;">**Normal Bearish**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">and</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**Normal Bullish**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">divergences show when momentum weakens against the current trend direction, hinting at potential trend reversals.</mark>

<mark style="color:$info;">In a</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**normal bearish divergence**</mark><mark style="color:$info;">, price makes a higher high while the oscillator makes a lower high, suggesting that bullish momentum is weakening, which could precede a downward reversal.</mark>&#x20;

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FOsrlQVTGnSIPU1zCJdKY%2Fimage.png?alt=media&#x26;token=38dbeaf0-fdaa-4c01-8582-82c6e7832f2d" alt=""><figcaption><p>Normal Bearish</p></figcaption></figure>

<mark style="color:$info;">Conversely, a</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**normal bullish divergence**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">occurs when price makes a lower low, but the oscillator makes a higher low, signaling a potential upward reversal.</mark>&#x20;

<mark style="color:$info;">Traders can use these divergences to anticipate reversals and adjust positions accordingly.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FpIan5lcMGhz4i5dthuLf%2Fimage.png?alt=media&#x26;token=89fd87aa-e7d4-4bad-a5c4-9e897e84958d" alt=""><figcaption><p>Normal Bullish</p></figcaption></figure>

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## **Hidden Divergence**

<mark style="color:$info;">**Hidden Bearish**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">and</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**Hidden Bullish**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">divergences suggest trend continuation, revealing underlying strength in the current trend despite minor pullbacks or rallies.</mark>

<mark style="color:$info;">**A hidden bullish divergence**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">occurs when price makes a higher low but the oscillator makes a higher low, suggesting the uptrend is likely to continue.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2Fw49jlmYhDuwwU7Ialn73%2Fimage.png?alt=media&#x26;token=c80d22f1-87d6-440a-8b7e-7562e4ad90b1" alt=""><figcaption><p>Hidden Bullish</p></figcaption></figure>

<mark style="color:$info;">Similarly, a</mark> <mark style="color:$info;"></mark><mark style="color:$info;">**hidden bearish divergence**</mark> <mark style="color:$info;"></mark><mark style="color:$info;">suggests the downtrend will continue if the oscillator shows a lower high while price makes a lower high, confirming downward strength.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2F81HyPbzYxMvWl1xfmMFj%2Fimage.png?alt=media&#x26;token=20ef0a71-61a1-43f5-b34f-bf0d2307ba72" alt=""><figcaption><p>Hidden Bearish</p></figcaption></figure>

{% hint style="info" %} <mark style="color:$info;">Traders can use hidden divergences to confirm that a trend remains strong and look for entries aligned with the current trend.</mark>
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## **Multiple Divergence**

<mark style="color:$info;">Signals when multiple divergence events occur consecutively, adding higher confluence to potential reversals or continuation zones.</mark>

<figure><img src="https://3353728891-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F1dlOGDREop4WMfLcctYT%2Fuploads%2FqvEUbuna88Xjy1rBkmdI%2Fimage.png?alt=media&#x26;token=6e489a24-8655-49e5-bf3e-b06c2bebef44" alt=""><figcaption></figcaption></figure>

<mark style="color:$info;">This helps traders quantify the strength of accumulated momentum dissonance before a major move.</mark>
