Divergence
When price and a momentum indicator disagree, for example price makes a higher high while RSI makes a lower high. It can warn that momentum is fading.
Related terms
Relative Strength Index (RSI)
A momentum oscillator from 0 to 100. Readings above 70 are often…
MACD
Moving Average Convergence Divergence. It tracks the gap between…
Momentum
The speed and strength of a price move. Fading momentum can warn…
Average daily range (ADR)
The average distance in pips between each day’s high and low over…
Average Directional Index (ADX)
An indicator of trend strength, not direction. Readings above…
Average True Range (ATR)
A volatility indicator that averages the true range, which…