Demonstrating Hidden Bearish Divergence-TDOC
Disclaimer: I don't own shares of TDOC. This is not a trading or investment recommendation but a demonstration of how the concept of hidden divergence works.
Hidden divergence similar to hidden bullish divergence is usually considered as an extension signal of the current trend.
TDOC like most small cap stocks in the biotech sector has been brutally hit, however, traders who would have observed the chart more closely & were aware of the developing hidden bearish divergence between price & RSI would have ensured not to go long at the wrong time. Price after the hidden bearish developed dropped from around $156 to about $67.
All the best!
Hidden divergence similar to hidden bullish divergence is usually considered as an extension signal of the current trend.
TDOC like most small cap stocks in the biotech sector has been brutally hit, however, traders who would have observed the chart more closely & were aware of the developing hidden bearish divergence between price & RSI would have ensured not to go long at the wrong time. Price after the hidden bearish developed dropped from around $156 to about $67.
All the best!
Commento:
On the chart, please read 'Price making lower lows in a down trend' as 'price make lower highs in a down trend'. Apologies for the error.