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Technicals

Momentum divergence

Momentum divergence is a phenomenon in the world of finance that occurs when the price and volume of a security diverge, meaning they move in opposite directions. This can happen when the price of a stock continues to increase, but the volume of trading decreases, indicating a lack of enthusiasm from buyers. This can be a warning sign of a potential trend reversal, as the momentum behind the price movement is weakening. A keen eye for momentum divergence can help investors make informed decisions in the stock market.

Related terms

relative strength index

Understand the meaning and definition of relative strength index in the context of stock market, trading, and investments.

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Positive divergence

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Delta

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Three Percent Rule

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Bottom

Understand the meaning and definition of Bottom in the context of stock market, trading, and investments.

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Accumulation/distribution

Understand the meaning and definition of Accumulation/distribution in the context of stock market, trading, and investments.

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