Forex glossary

Divergence in Forex

A clear definition of Divergence, with practical context for reading markets and making better trading decisions.

Level 4 · Give Indicators a JobTechnical analysis

Definition

A disagreement between price and an indicator’s momentum. It can warn that a move is tiring, but price structure still decides the trade.

Price making a higher high while RSI makes a lower high is bearish divergence.

Understanding Divergence helps traders interpret market information, plan decisions, and manage risk with more context.

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