Technical
Divergence
QUICK DEFINITION
Divergence in Elliott Wave Theory: A disagreement between price action and a technical indicator. Bullish divergence occurs when price makes a lower low but the indicator makes a higher low. Bearish divergence is common at Wave 5 tops.
What Divergence Means
A disagreement between price action and a technical indicator. Bullish divergence occurs when price makes a lower low but the indicator makes a higher low. Bearish divergence is common at Wave 5 tops.
Where You'll See It
Divergence appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the technical family of Elliott Wave concepts and shows up most often when analysts are applying technical analysis tools — RSI, MACD, moving averages — alongside the wave count.
LEARN MORE
- → Elliott Wave Theory Guide — the 5-3 pattern, rules, Fibonacci, wave degrees
- → Elliott Wave Cheat Sheet — the 3 absolute rules and 6 Fibonacci relationships
- → Our Methodology — how Artavest analysts count waves on 108 US instruments