What Is Divergence?
Divergence is when price and an indicator (such as RSI or MACD) move in opposite directions, hinting at a possible shift.
Open Exness Account →Divergence is when price and an indicator (such as RSI or MACD) move in opposite directions, hinting at a possible shift. It is a concept traders study to understand markets better. It is general educational information, not financial advice, and trading forex and CFDs remains high-risk because leverage magnifies both gains and losses.
Divergence explained
- Bullish divergence: price makes a lower low, the indicator a higher low.
- Bearish divergence is the mirror image.
- It is read as a warning, not a guaranteed reversal.
- Confirmation from price action is usually sought.
- This is general educational information, not financial advice.
- CFD and forex trading is high-risk — only trade money you can afford to lose.
Frequently asked questions
What is divergence in trading?
Divergence is when price and an indicator (such as RSI or MACD) move in opposite directions, hinting at a possible shift.
Is divergence risky?
All forex and CFD trading is high-risk because leverage magnifies both gains and losses. Treat any concept as a study tool and manage your risk.