The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

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Divergence Analysis


Figure 9.17 Directionally Aligned Slope Divergence and Convergence.

Figure 9.18 Directionally Aligned Slope Divergence and Convergence.

In Figure 9.17, we see that between time lines A and B, the slopes of the cur-
rent larger trends of the main and supporting data series are moving away or di-
verging from each other. Subsequently, between time lines B and C, we see that the
slopes of the current larger trends of the two data series are now moving toward
or converging on each other.
In Figure 9.18, we also see divergent and convergent action both occurring in
the same general direction, but this time to the downside. In both cases, there is no
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