thE hAnDbook of tEchnicAL AnALySiS9.2.11 Degree of Confirmation and non‐Confirmation
in slope Divergence
It should be obvious that under the broader definition and interpretation of
divergence, both directionally aligned divergence and convergence are not con-
sidered divergent, since the slopes of the two data series are not in disagree-
ment, that is, pointing in opposing directions. Does this mean that directionally
aligned divergences and convergences represent confirmation? It would be fairly
reasonable to assume that divergent and convergent behaviors have different im-
plications and that they both cannot imply a continuation of the current larger
trend. Only one would be biased toward the continuation of the current larger
trend while the other would be biased toward a weakening or reversal of that
same trend. The best way to reconcile this incongruity is to resort to a relative
measure, that is, by analyzing the degree of disagreement between the slopes of
the data series.
In Figure 9.23, we see the slopes of two data series trending to the upside.
Although the slopes of both data series are generally moving upward and not in
opposing directions, they are nonetheless not rising at similar or identical rates.
Each data series is rising at a different rate, evinced by the angle of ascent. As long
as the supporting data series is rising at a lower rate than the main data series in
an uptrend, or falling at a higher rate than the main data series in a downtrend,
we have directionally aligned slope divergence. See Figure 9.24.
As price rises, once the slope of the supporting data series falls to the hori-
zontal and below, we have non‐directionally aligned divergence. Similarly in a
downtrend, once the slope of the supporting data series rises to the horizontal and
above, we have non‐directionally aligned convergence. The broad definition of
divergence only applies to non‐directionally aligned divergence and convergence.
See Figures 9.25 and 9.26.
As we have seen, the various degrees of confirmation and non‐confirmation
between the data series increases and diminishes with the amount of agreement
Figure 9.23 Varying Degrees of Directionally Aligned Slope Divergence in an Uptrend.