Regular Divergence

A divergence is a separation between price and indicator that warns of a possible short- to intermediate term change of trend. A bullish divergence arises during a down move when price makes either a lower low or a double bottom but the indicator makes a higher low or a double bottom.



A bearish divergence occurs during an up move when price makes either a higher high or a double top and the indicator makes a lower high or a double top. Classic divergences can occur at price tops or bottoms and also at price corrections.



For our opinion most correct way to determine divergence is determine divergence between fractals on price.

Hidden (Reverse) Divergence

In a bullish hidden divergence, the indicator makes a lower low, but price makes either a higher low or a double-bottom low. This type of nonconfirmation occurs mainly during corrective declines in an uptrend, but it may also be found on occasion at price retests of the lows.

In a bearish hidden divergence, price makes a lower high, but the indicator makes a higher high. This type of nonconfirmation is mainly found during corrective rallies in a downtrend but may also occur during retests of a price top.

Standard and Advanced Divergence Indicators

Standard divergence indicators shows divergence between price and standard oscillator (MACD, Stochastic, RVI, RSI, etc...)

Advanced divergence indicators hows divergence between price and advanced oscillators (PowerRVI, Hurst, John Ehlers Indicators )

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