Definition of Divergence
A situation where the price of an asset and a technical indicator (such as RSI or MACD) move in opposite directions. Divergence often signals a potential reversal in the current trend.
At a glance
Term
Divergence
URL slug
divergence
Category
Analysis
Short answer
A situation where the price of an asset and a technical indicator (such as RSI or MACD) move in opposite directions.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Divergence” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Divergence” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Divergence” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
Related terms
FAQ
A situation where the price of an asset and a technical indicator (such as RSI or MACD) move in opposite directions.
Knowing the precise definition of “Divergence” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Divergence” as loose slang while your broker/platform specification defines it more narrowly.