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All you wanted to know about convergence & divergence in technical analysis

In technical analysis, divergence is given greater preference as the 'divergence behaviour' may reflect a change in a price trend or sentiment

Topics
Chart Reading | stock market trading | technical analysis

Avdhut Bagkar  |  Mumbai 

markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain

Convergence is a phenomenon when two components move in the same direction. In the world of trading, convergence shows that the direction is supported by secondary factors (technical indicators or price-based studies like moving average, Bollinger Band, Ichimoku). For example, if the index price is rising upward and indicators like moving averages or Relative Strength Index (RSI) move in the same direction, the structure is then said to be in convergence.

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First Published: Tue, May 25 2021. 08:27 IST
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