Divergence
Divergence is when price and an indicator disagree — a warning that the current move is losing momentum.
Also known as: bullish divergence, bearish divergence
Bearish divergence
Divergence occurs when price makes a new extreme but an indicator like RSI or MACD does not confirm it. Bearish divergence: price makes a higher high while the indicator makes a lower high — the advance is tiring. Bullish divergence: price makes a lower low while the indicator makes a higher low — the decline is exhausting.
Divergence is an early-warning signal, not an entry trigger. A trend can diverge for a while before it actually turns, so traders use it as a reason to tighten stops and watch for confirmation rather than to act immediately.