While divergences can occur between an asset’s price and any other piece of data, they are most commonly used withtechnical indicators, especially with momentumoscillators, such as the Commodity Channel Index (CCI), Relative Strength Index (RSI),Stochastic, andWilliams %R. Types of Divergences Th...
If you’re unfamiliar with moving averages and how technicians use them to create indicators such as MACD, RSI, and stochastics,start with this overview. MACD takes the moving average concept a step further.It’s one thing to compare a fast and a slow moving average, but for MACD, that’...