Bullish Divergence
Bullish divergence is a technical analysis term used to describe a situation in which the price of a security or asset is moving in a downward direction, while the underlying indicator is moving in an upward direction. This divergence is seen as a sign that the downward trend in the price of the security or asset may be coming to an end, and that the price may soon start to rise. Bullish divergence is often used by traders and investors to identify potential buying opportunities.
History of Bullish Divergence
The concept of bullish divergence has been around since the early days of technical analysis. It was first described by Charles Dow, the founder of Dow Theory, in the late 19th century. Since then, the concept has been used by traders and investors to identify potential buying opportunities in the markets. In recent years, the concept has been further developed and refined by modern technical analysts.
Comparison Table
| Price | Indicator |
|---|---|
| Downward | Upward |
Summary
Bullish divergence is a technical analysis term used to describe a situation in which the price of a security or asset is moving in a downward direction, while the underlying indicator is moving in an upward direction. This divergence is seen as a sign that the downward trend in the price of the security or asset may be coming to an end, and that the price may soon start to rise. For more information about bullish divergence, traders and investors can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Bearish Divergence
- Moving Average Convergence Divergence (MACD)
- Relative Strength Index (RSI)
- Stochastic Oscillator
- Bollinger Bands
- Price Action
- Support and Resistance
- Trend Lines
- Fibonacci Retracement
- Candlestick Patterns
