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Old 08-12-05, 07:30 PM
tiago's Avatar tiago tiago is offline
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what is divergence????

can someone explain to me and give me an easy answer/example of what divergence is??? thankyou for your time in advance......tiago
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Old 08-12-05, 07:45 PM
TheWolf's Avatar TheWolf TheWolf is offline
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Re: what is divergence????

Quote:
Originally Posted by tiago
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 )


Last edited by TheWolf; 08-12-05 at 07:47 PM.
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Old 08-13-05, 02:41 AM
fairwind's Avatar fairwind fairwind is offline
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Re: what is divergence????

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.....
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Old 08-14-05, 01:04 PM
Rhody Trader's Avatar Rhody Trader Rhody Trader is offline
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Re: what is divergence????

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