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Trading glossary · indicators

bullish divergence

When price drops to a new low but a strength meter does not, a hint that the selling is getting tired.

The fuller meaning

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

bullish divergence.

Related words

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