Divergence Trading Guide 101: The Basics

Divergence is a pattern type that can be seen on cryptocurrency price charts that denotes a potential trend change. While hidden divergence is observed at the end of a trend consolidation, classic or regular divergence is observed at the end of a trend.

Divergence is a technical analysis pattern that can be seen on price charts when the price of a crypto asset is going against the trend of other data or in the opposite direction of a technical indicator. It is a signal that the trend may be weakening and shifting. It occurs when a price and an oscillating indicator, like the MACD or RSI, disagree.