Your Almost Daily Bit of Wall Street Wit & Wisdom

Actors Shailene Woodley and Theo James in Divergent, based on the novel by Veronica Roth. h/t Jaap Buitendijk/Summit Entertainment

“Divergence is the most important aspect of oscillator analysis.”
— John Murphy

When price moves to a new low and technical indicators do not, you have a positive divergence.

When price moves to a new high and technical indicators do not, you have a negative divergence.

The development of a positive technical divergence tells us price may not be as weak as it appears.

The development of a negative technical divergence tells us price may not be as healthy as it appears.

Oscillator analysis and divergence provide valuable information for traders.

We combine the best of western technical analysis with our expertise in Japanese charting techniques to help you make great options gains from small stock moves.

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Best regards,

Steve

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