Technical analysis
Divergence
Also known as: bullish divergence, bearish divergence
Divergence occurs when price and an oscillator (like RSI or MACD) move in opposite directions, signalling weakening momentum.
If price makes a higher high but the oscillator makes a lower high, upward momentum is fading (bearish divergence), and vice versa. Divergence is an early reversal warning, best used with confirmation. Algovex can detect divergence automatically.
Related terms
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