Glossary

Divergence

Price and an indicator (RSI, MACD, delta) moving in opposite directions: if price makes a new high but the indicator doesn't, momentum is weakening.

Bearish divergence is sought at highs, bullish divergence at lows. Divergence gives no timing; in a strong trend it can form several times in a row while price keeps going.

Best use: the combination of divergence + key level + structure break. In order flow, price-delta divergence is read with the same logic.

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