Concept
Momentum Divergence
QUICK DEFINITION
Momentum Divergence in Elliott Wave Theory: 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.
What Momentum Divergence Means
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.
Where You'll See It
Momentum Divergence appears regularly in Artavest's weekly wave-count analysis across 108 US stocks and ETFs. It's part of the concept family of Elliott Wave concepts and shows up most often when analysts are discussing the foundational principles behind Elliott Wave Theory.
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
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