Glossary › bearish divergence

Trading glossary · indicators

bearish divergence

When price climbs to a new high but a strength meter does not, a hint that the push up is getting tired.

The fuller meaning

Price makes a higher high while an oscillator such as RSI, MACD or OBV makes a lower high, showing weaker momentum or participation. It is a warning, not a trigger: divergence can last through several swings, so traders wait for a price signal such as a break of structure.

bearish divergence.

Related words

61.8% level · ATR · ATR expansion · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence · dynamic resistance