{"slug":"divergence","term":"Divergence","category":"Technical Analysis","definition":"Divergence is price and an indicator disagreeing — price prints a new high while RSI, MACD, or volume delta prints a lower high (bearish), or a new price low against a higher indicator low (bullish). It flags momentum thinning behind a move, warning that the trend may be running on fumes.","street":"Price is shouting new highs but the engine's whispering — that mismatch is your early warning, not your entry.","depth":["Two flavours. Regular divergence warns of reversal: price sets a higher high while RSI or CVD sets a lower one, meaning the push had less force behind it. Hidden divergence points to continuation: in an uptrend, price makes a higher low while the indicator makes a lower low — momentum reset, trend intact. Read it off confirmed swing points on closed candles, and trust a 4-hour or daily print far more than anything the 5-minute serves up.","Divergence is a condition, not a trigger — that's the line that saves accounts. A strong trend can print three or four bearish divergences on the way up, and each one liquidates a fresh batch of early shorts before the top actually forms. The playbook that works: note the divergence, then wait for structure to break — support giving way, a lower high forming — and let the divergence be the reason the break has teeth. Fading a trend on divergence alone is paying for someone else's exit."],"live":{"label":"RSI and MACD divergences on the 80 most-traded perps","href":"/tools/scanner?tab=divergences"},"related":["rsi","macd","cvd","confluence"],"snippet":"Divergence is price and an indicator disagreeing — a new price high on a lower RSI or MACD high, or a new low on a higher one — as momentum thins."}