Short Term Divergences Screener



Short Term Divergences Screener helps you to screen Classical Positive Divergence and Negative Divergence as well as Positive Hidden Divergence and Negative Hidden Divergence (also known as Reversals for eg. RSI Positive Reversals or RSI Negative Reversals) on EOD Stock Charts. Just click on chart button on the result of the screener and see the divergence lines drawn on both stock as well as indicators. These divergences are essential to technical analysis studies and can greatly increase your winning probabilities in the stock market.

Divergence: In technical analysis, Divergence occurs when the price of an asset and a momentum indicator move in opposite directions. Hidden divergence can be either positive or negative, both of which are signals of major shifts in the direction of the price.
Also check IntraDay Pattern Screener, IntraDay Divergence Screener, Short Term Pattern Screener

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Divergence Type

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Results of previous days

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.