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Trading glossary · indicators

divergence

When price and a strength meter disagree, like price making a new high while the meter does not. It can warn of a turn.

The fuller meaning

Disagreement between price and an oscillator or volume measure such as RSI, MACD or OBV: bearish when price makes a higher high and the indicator a lower high, bullish when price makes a lower low and the indicator a higher low. It warns of fading momentum but can persist for several swings.

divergence.

Related words

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