what is divergence????

[tiago]

can someone explain to me and give me an easy answer/example of what divergence is??? thankyou for your time in advance......tiago

[TheWolf]

can someone explain to me and give me an easy answer/example of what divergence is??? thankyou for your time in advance......tiago

You can find more info here:

http://www.trading-naked.com/Divergence.htm
http://www.stockcharts.com/education...dic_MACD1.html

Basically, a divergence occours when the trend of price high and lows goes one way and the trend of tops and bottoms in oscillators e.g. MACD goes the opposite way. ( see pic below )

[fairwind]

Hi tiago,

Divergence is when the price shows one direction and an indicator shows the opposite direction. Divergence is generally seen as a strong signal for a reversal of price direction.

Check this link out:
http://www.moneytec.com/forums/searc...earchid=106005

It is the result of a search in this forum for 'divergence' in the 'titles only'.

Hope this helps a bit.....

[Rhody Trader]

Divergence can also be used to refer to two normally linked/correllated markets when they start to go in opposite directions.