What is divergence in trading?
Divergence in trading occurs when price moves in one direction while a momentum indicator (RSI, MACD, Stochastic) moves in the opposite direction. Bullish divergence: price makes a lower low while indicator makes a higher low. Bearish divergence: price makes a higher high while indicator makes a lower high. Divergence often precedes trend pauses or reversals.
More detail
Divergence is among the more reliable signals in technical analysis, especially when it appears at key support/resistance levels.
Divergence is NOT a timing signal — it can persist for several bars or even weeks before the actual reversal.
Always wait for price-action confirmation (break of a swing point) before acting on divergence.