Hidden divergence is the trend-continuation cousin of regular divergence. A hidden bullish divergence shows up during an uptrend's pullback: price makes a higher low (the uptrend is holding) while RSI makes a lower low (the dip looked scary on momentum). It suggests the pullback is just a breather and the uptrend should resume.
In plain terms
The uptrend dipped, the dip looked worse than it really was, and buyers quietly stepped back in. It is a "the pullback may be over" hint, not a reversal call.
What triggers it
On the two most recent confirmed swing lows: price's second low is higher
than its first (price[L2] > price[L1]) while RSI's second low is lower
(RSI[L2] < RSI[L1]). We also require the higher-timeframe context to be
bullish, so the signal only fires with the bigger trend, never against
it.
How Signalix scores strength
The base score is 2 out of 5. Continuation patterns carry less weight than reversals because the trend direction is already known. The alert simply flags that the pullback may be ending.
When it stays silent
If the higher-timeframe trend is unclear or sideways, the detector does not fire. Hidden divergences out of a flat, directionless market tend to chop around rather than follow through.