Price↔CVD Divergences
Session 03 covered the two classic divergences. This one is about the harder part: which divergences deserve your money. Hidden divergences, divergences that stack and fail in trends, and the flip that turns a dead signal into a live one.
Hidden bullish divergence
Price holds a higher low while CVD prints a lower low: sellers dumped harder and got less. Continuation fuel in an uptrend.
Invalidated when price closes below the higher low.
Stacked divergences
A strong trend prints divergence after divergence and keeps going. Count them: the first is noise, interest starts at the third against an exhausted move.
Not a signal at all until price confirms with a structure break.
Level confluence
A divergence printed into a real level — prior day value area high, a wall on the heatmap — is a trade. A divergence in the middle of nowhere is a statistic.
Invalidated when the level breaks and holds.
Failed-divergence flip
CVD reclaims the high that made the divergence: the warning is cancelled and the trapped counter-traders become fuel. Failure of a signal is itself a signal.
Invalidated when the reclaim immediately reverses back.