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Divergence
(redirected from divergences)

   Also found in: Dictionary/thesaurus, Medical, Legal, Encyclopedia, Wikipedia 0.01 sec.
Divergence
When two or more averages or indexes fail to show confirming trends.

Divergence
In technical analysis, a situation in which two indicators move in opposite directions. For example, stock prices may decline while bond prices may increase. This can be either a bullish or a bearish indicator, depending on the nature of the divergence. Technical analysts use any number of related indicators to attempt to observe divergence and make investment decisions accordingly. See also: MACD.


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