Hidden divergence compares higher lows

Hidden divergence compares higher lows (HL) of the price uptrend with lower lows (LL) in the indicator and at lower altitudes (LH) from the price in a downtrend with higher highs (h) of the indicator. Hidden divergence helps to answer the question whether this trend will continue. The following table shows how HD can confirm that flags / retracements are high percentage trades continue to take. When you pull Trendline (TL) indicator you use, you want to match the length of TL drawn on the price chart. Note the price action entry for many traders corresponds with MACD crossing zero.