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DIVERGENCE

Price is doing one thing and the indicator is doing something else.

Published by The Retail Trader · JUL 31, 2026 · Indicators

Divergence — Price is doing one thing and the indicator is doing something else. This is a classic hint of weakening momentum.

WHERE THIS FITS IN

This term comes under Indicators, in the section "GRAMMAR OF INDICATOR". First the words which are applied on every indicator:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Indicator
• Overlay
• Oscillator
• Leading vs Lagging
• Period / Length
• Smoothing
• Signal
• Confluence
• Repainting
• Whipsaw Signals

To read the entire group and all its examples in one place, see the journal "INDICATORS: FORMULA TOOLS" - this term has been taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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