Technical
What is Momentum Divergence (Bullish / Bearish)?
A disagreement between price and a momentum oscillator: price makes a new extreme, but the indicator (MACD, RSI) refuses to confirm it.
Formula
Bullish: Price makes a lower low while the oscillator makes a higher low; Bearish: price higher high, oscillator lower high
How to Interpret
One of the few genuinely leading patterns in technical analysis: it flags deteriorating internals behind a headline move — a new low made on less downside force, or a new high on fading momentum — before price turns. Strongest at multi-week extremes spanning multiple swings.
Typical Ranges
Divergences can stack three or four deep in a strong trend before anything reverses — they identify vulnerability, not timing. Requires confirmation (a break of structure, a crossover) to act on.
Find Stocks Using This Signal
Screen US and Indian stocks by Momentum Divergence in the Technical screener.