Term

Divergence

A Wealth of Knowledge

A divergence is a phenomenon whereby an indicator deviates from price movement. So if indicators get their information from price movement, the logic is, it should do what the price is doing. So any irregularities, or instances where an oscillator strays from actual price movement, this is called divergence because it is showing different information from the price. For more information on how to trade a MACD divergence click here.

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