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Divergence...briefly, what is it?

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Divergence is an extremely important phenomenon that occurs when a particular technical study, technical indicator or oscillator DOES NOT CONFIRM the price action of the underlying stock, bond or commodity. This will often signal that the price move of the asset has exhausted itself and that a reaction high or low is at hand.

You're going to hear a lot more about Divergence in some of the other Classes, that delve in technical indicators.


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