// TRADING TERMINOLOGY
What is Divergence?
When the price of an asset moves in the opposite direction of a technical indicator.
In-Depth Explanation
Divergence is a powerful signal that the current trend may be weakening. For example, if price makes a higher high but the RSI makes a lower high, it is a "Bearish Divergence."
Practical Example
"A bullish divergence on the 4H chart precedes a major reversal in the AUD/USD pair."
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