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3 Cards in this Set
- Front
- Back
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Positive Divergence
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price makes a lower bottom, but the indicator makes a higher bottom
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Negative Divergence
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price makes a higher top, but the indicator makes a lower top
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Exhaustion Divergence
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Carl Swenlin, Decisionpoint.com from stockcharts.com
the opposite of the positive or negative divergence. In a rising trend, the price index makes a lower top while the indicator makes a higher top. And in a falling trend, price makes a higher bottom while the indicator makes a lower bottom. I believe it signals the exhaustion of the price move because internals are unable to drag price along with them. |
