Divergence

Divergence appears when price makes a new high or low but an indicator such as RSI or MACD fails to confirm. Bullish divergence: price makes a lower low while the indicator makes a higher low. Bearish divergence: price makes a higher high while the indicator makes a lower high.

Divergence can hint that momentum is fading, but it can persist. Treat it as a warning light that invites caution or tighter risk — not an automatic reversal signal.