Divergence(redirected from Divergement)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved