Navigation

Divergence

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 potential change in price direction.

Back to Forexpedia Main Page

"It's not the load that breaks you down, it's the way you carry it."
Lena Horne
Clicky Web Analytics