A divergence in an uptrend happens when price action makes a new higher high but the technical indicator used on the chart doesn’t. A divergence happens during a downtrend when price action makes a new lower low, but the technical indicator used on the chart doesn’t. If a divergence is signaled, it can be a high probability of a price reversal as this shows the momentum of the trend is slowing. A divergence shows a loss of confluence between price movement and the indicator used.
Divergence cheat sheet.#AKAL pic.twitter.com/qIjCp53thr
— Abhishek Kar (@Abhishekkar_) May 20, 2019
