Divergence

Divergence
When the price of an asset and an indicator, index or other related asset move in opposite directions. In technical analysis, traders make transaction decisions by identifying situations of divergence, where the price of a stock and a set of relevant indicators, such as the money flow index (MFI), are moving in opposite directions.

Divergence

In technical analysis, divergence is considered either positive or negative, both of which are signals of major shifts in the direction of the price. Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward. Negative divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead closes lower than the previous high.


Investment dictionary. . 2012.

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  • divergence — [ divɛrʒɑ̃s ] n. f. • 1626; lat. sc. divergentia 1 ♦ Situation de ce qui diverge, de ce qui va en s écartant. ⇒ dispersion, écartement. Divergence d une lentille, d un système optique. ⇒ vergence. ♢ Métrol. Mesure de la puissance d un système… …   Encyclopédie Universelle

  • DIVERGENCE FM — Création 1987 Langue Français Pays …   Wikipédia en Français

  • Divergence — Di*ver gence, Divergency Di*ver gen*cy, n. [Cf. F. divergence.] 1. A receding from each other in moving from a common center; the state of being divergent; as, an angle is made by the divergence of straight lines. [1913 Webster] Rays come to the… …   The Collaborative International Dictionary of English

  • divergence — divergence. См. дивергенция. (Источник: «Англо русский толковый словарь генетических терминов». Арефьев В.А., Лисовенко Л.А., Москва: Изд во ВНИРО, 1995 г.) …   Молекулярная биология и генетика. Толковый словарь.

  • divergence — index antithesis, circulation, conflict, contention (opposition), contradiction, contradistinction, controversy ( …   Law dictionary

  • Divergence —   [engl.], Divergenz …   Universal-Lexikon

  • divergence — DIVERGENCE. subst. f. Terme de Géométrie et d Optique. Situation de deux lignes, de deux rayons, qui vont en s écartant …   Dictionnaire de l'Académie Française 1798

  • divergence — 1650s, from Mod.L. divergentia, from divergens (see DIVERGE (Cf. diverge)). Related: Divergency …   Etymology dictionary

  • divergence — 1 *deviation, deflection, aberration Analogous words: division, separation, parting (see corresponding verbs at SEPARATE): differing, disagreeing, varying (see DIFFER) Antonyms: convergence Contrasted words: agreement, concurrence, coincidence… …   New Dictionary of Synonyms

  • divergence — [n] branching out; difference aberration, alteration, alterity, crotch, deflection, departure, detour, deviation, digression, disagreeing, discrepancy, disparity, dissemblance, dissimilarity, dissimilitude, distinction, divagation, divergency,… …   New thesaurus

  • divergence — n. pl. divergencies [dəvʉr′jəns, dīvʉr′jəns] n. [ML divergentia] 1. a diverging, separating, or branching off 2. a becoming different in form or kind 3. departure from a particular viewpoint, practice, etc. 4. difference of opinion; disagreement …   English World dictionary

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