What is the MACD?
December 6, 2021
Oversold
December 6, 2021

Divergence

Divergence is a discrepancy between the movement of the indicator and the chart. Divergence usually indicates a trend reversal.

So, if the chart lines form a series of maximums, but the Stochastic lines, in contrast, are descending, you can expect a descending trend to start.

If the chart traces a series of new minimums, but the Stochastic lines have started rising, you can expect the price to start to rise.

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