# Divergence

*Trading & Technical Analysis — Finicade finance glossary*

Divergence is price making a new extreme while an indicator does not, read as momentum fading beneath the surface. A stock making a higher high on a lower RSI peak is the standard example. It's the most defensible use of oscillators, because it compares two series rather than reading a threshold — and it can persist for a long time before anything happens.

**Also known as:** bullish divergence, bearish divergence, momentum divergence

**Related terms:** [Relative Strength Index (RSI)](https://finicade.com/glossary/rsi), [MACD](https://finicade.com/glossary/macd), [Stochastic Oscillator](https://finicade.com/glossary/stochastic-oscillator), [Technical Analysis](https://finicade.com/glossary/technical-analysis), [Market Breadth](https://finicade.com/glossary/market-breadth)

Source: https://finicade.com/glossary/divergence