Forex glossary
What is a divergence?
When price and an oscillator such as RSI move in different directions, a sign that momentum is changing.
Definition
Divergence: When price and an oscillator such as RSI move in different directions, a sign that momentum is changing.
In context
MACD (Moving Average Convergence Divergence) shows momentum by comparing two EMAs.
From the lesson MACD.
Lessons that cover Divergence
Indicators · 6 min
MACD
Two moving averages and a histogram that measure momentum.
Indicators · 6 min
RSI (Relative Strength Index)
The most popular momentum gauge in trading.
Advanced Technicals · 7 min
Regular Divergence
When price and momentum disagree, a reversal may be near.
Advanced Technicals · 5 min
Hidden Divergence
The divergence that signals the trend will continue.