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Divergence
Technical AnalysisWhen price makes a new high/low but an indicator (RSI, MACD, OBV) does not confirm it. Bullish divergence: price makes lower low, indicator makes higher low. Bearish divergence: price makes higher high, indicator makes lower high.
Related Terms
RSI (Relative Strength Index)
A momentum oscillator ranging from 0 to 100 that measures the speed and magnitude of recent price changes.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator showing the relationship between two EMAs (typically 12 and 26 period).
OBV (On-Balance Volume)
A cumulative volume indicator that adds volume on up days and subtracts on down days.