What is this indicator?
Occurs when the direction of price movement doesn't match the direction of an oscillator like RSI or MACD. Divergence alone isn't an entry signal — it's a warning of possible weakness in the current trend.
How to read the chart
The indicator moving toward the ends of its range usually signals overbought or oversold conditions; a divergence between price and the indicator is also considered an important signal.
Practical tip
Instead of trading purely off reaching an overbought or oversold zone, first check the overall trend on a higher timeframe and only take signals that align with it.