Divergence (Technical)

A divergence occurs when a stock's price moves one direction while a technical indicator (a mathematical tool that measures momentum or trend strength) moves the opposite direction. You'll spot this on price charts when analyzing momentum indicators like RSI or MACD. It matters because divergences can signal that a price trend is weakening and might be about to reverse—giving you an early heads-up before the crowd notices. For example, if TechCorp stock keeps hitting higher highs but its momentum indicator keeps hitting lower highs, that's a bearish divergence suggesting the uptrend could be losing steam. It's not a guaranteed prediction, but it's a useful red flag worth watching.