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What does divergence mean in trading?
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Apr 10, 2024 · Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the...
May 22, 2024 · Divergence occurs when an indicator and the price of an asset are heading in opposite directions. Of these three signals, divergence is definitely the most complicated for...
Apr 8, 2024 · In trading, divergence means that the price swings and the indicator (oscillator) movement are not in phase. A divergence signal is formed if the price is making a higher swing high when the oscillator is making a lower high, or if the price is making a lower swing low when the indicator is making a higher swing low.
Mar 26, 2024 · Divergence refers to a situation where the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator. Divergence occurs when the price of a stock makes new highs or lows that are not confirmed by the indicator.
How to trade a divergence – the optimal entry. A divergence does not always lead to a strong reversal and often price just enters a sideways consolidation after a divergence. Keep in mind that a divergence just signals a loss of momentum, but does not necessarily signal a complete trend shift.