Regional Preferences

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Agent Merina

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Technical Analysis

Divergence

A mismatch between price direction and an indicator's direction, such as RSI or MACD. It is one of many tools used within technical analysis to translate raw price data into a visual signal that can guide entries, exits, or bias.

Meaning

What Divergence means

A mismatch between price direction and an indicator's direction, such as RSI or MACD. It is one of many tools used within technical analysis to translate raw price data into a visual signal that can guide entries, exits, or bias.

Trading context

Why it matters

It can warn of weakening momentum ahead of a potential reversal. At the intermediate level, this becomes increasingly relevant as traders begin refining strategies, tightening risk controls, and reading the market more critically.

Example

How traders may see it

Price makes a new high while the oscillator makes a lower high. In practice, traders typically encounter this directly within their trading platform, charting software, or an economic calendar, depending on the specific context in which it arises.