Concept
Momentum Divergence
When price makes a new high (or low) but momentum indicators (RSI, MACD) do not confirm. In Elliott Wave analysis, divergence between Wave 3 and Wave 5 is extremely common and signals that Wave 5 is completing.
RELATED TERMS
Wave 5
The final impulse wave in the motive sequence. Wave 5 completes the trend and is...
Truncation
When Wave 5 fails to exceed the end of Wave 3. Truncations occur after an extrem...
RSI
Relative Strength Index, a momentum oscillator that measures the speed and magni...
MACD
Moving Average Convergence Divergence, a momentum indicator that shows the relat...