TRADING GLOSSARY
Divergence
Divergence occurs when price and a technical indicator show different patterns, such as price making a higher high while momentum makes a lower high. It may suggest changing momentum, but it does not confirm a reversal or establish when one might occur.
EXAMPLE
On a hypothetical chart, price reaches a higher peak while the relative strength index peaks lower, showing bearish divergence even as the upward trend continues.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure