Divergence occurs when price makes a new high or low but an indicator such as RSI or MACD does not confirm it. It can warn that momentum is fading and a reversal may be near. Traders treat it as a caution signal, not a guaranteed turn.
Forex Term
Divergence
When price and an indicator move in opposite directions.
Example
Price makes a higher high while RSI makes a lower high — a bearish divergence.
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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.