September 16, 2021

Divergence Cheat Sheet

Divergence Cheat Sheet
Divergence Cheat Sheet

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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.