ETHUSD:Possibility of hidden bullish divergence on 4 hour chart?
Do your own research and this is not any shape or form of financial or trade advise or recommendations. In fact, don’t believe a word I am saying here nor analyze the illustration I posted here. I am simply expressing my thoughts based upon my experience. Your experience may be different or similar which does not make you or me right or wrong.
On the recent ETHUSD 4 Hour Chart:
Line A on price and stochastic indicator hints towards hidden bearish divergence (continuation pattern bearish direction).
While downward price movement might be temporary, possibly setting up the scenario for the hidden bullish divergence (continuation pattern of moving in bullish direction) as shown as line B.
For the hidden bullish divergence to occur, price needs to move into the green box (above 135 level) in the short run meanwhile stochastic lines needs to move into yellow box (below 11 level). In addition, lower and higher time frames (From 4 hour chart) also need to support the idea of the bullish movement. If higher and lower time frames are not aligned with 4 hour hidden bullish divergence then it might not play out at all.
On the recent ETHUSD 4 Hour Chart:
Line A on price and stochastic indicator hints towards hidden bearish divergence (continuation pattern bearish direction).
While downward price movement might be temporary, possibly setting up the scenario for the hidden bullish divergence (continuation pattern of moving in bullish direction) as shown as line B.
For the hidden bullish divergence to occur, price needs to move into the green box (above 135 level) in the short run meanwhile stochastic lines needs to move into yellow box (below 11 level). In addition, lower and higher time frames (From 4 hour chart) also need to support the idea of the bullish movement. If higher and lower time frames are not aligned with 4 hour hidden bullish divergence then it might not play out at all.