Imagine you want to buy a car and talk to one of your friends who is a car dealer. They enthusiastically promote a model highlighting its features and the price fits your budget too. On the other hand, another friend of yours who owns the car tells you about their bad experience with it. While your dealer friend is advising you to get the car, your friend who owns the car is recommending you avoid it. Whom will you listen to?
Well, in trading, a ‘divergence’ is a similar problem.
A divergence occurs when the price of a stock and a technical indicator give contradictory signals about the stock’s potential future movement.
Learn how to trade during a divergence in our latest newsletter issue 
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