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Divergence

Divergence occurs when an asset's price moves in the opposite direction from other data or from a technical signal, such an oscillator. Divergence signals that the price trend may be waning and, in extreme situations, may even result in a price reversal. Divergence can be both beneficial and bad. Positive divergence suggests that the asset's price may rise in the future. A move lower in the asset is indicated by negative divergence.

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