IntraDay Divergences Screener

Divergences are of two types i.e. positive and negative.

Classic Positive divergence occurs when the price of a security makes a new low while the indicator starts to climb upward. Strong divergence occurs when the price makes a new lower trough but the momentum indicator makes a corresponding higher trough indicating a loss of momentum in the current down-trend.This divergence suggests a reversal of trend from down to up. This can serve as an alert for traders to book profits in shorrt positions, or for aggressive traders to consider initiating a long position.

Classic Negative divergence happens when the price of the security makes a new high, but the indicator fails to do the same and instead closes lower than the previous high. Strong divergence occurs when the price makes a new higher peak but the momentum indicator makes a corresponding lower peak indicating a loss of momentum in the current up-trend. This divergence suggests a reversal of trend from up to down and therefore can warn of an impending peak. This can serve as an alert for traders to book profits in long positions, or for aggressive traders to consider initiating a short position.