Divergence

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Divergence is a trading pattern in which the relationship between price action and an oscillator indicator is measured.

If the price begins to move in a negative correlation to an indicator, (ie. higher "highs" in price, but lower "highs" in indicator), it could be viewed as a leading indicator for a change in price direction.

School of Pipsology

Forex Training: Learn more about Divergence Trading and Oscillators and Leading Indicators.

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