Divergence Analysis
Figure 9.24 Varying Degrees of Directionally Aligned Slope Divergence in a
Downtrend.Figure 9.25 Increasing Degrees of Non‐Confirmation and Divergence.between the data series. When dealing with non‐directionally aligned divergence,
non‐confirmation is represented by significantly clear and obvious disagreement.
But with directionally aligned divergence, as seen in Figure 9.25, non‐confirmation
is technically absent as rising peaks and troughs in price are matched with rising
peaks and troughs in the supporting data series, and similarly for declining peaks
and troughs in a downtrend. The only distinguishing factor is the strength or de-
gree of agreement present. A strong positive correlation between the slopes of the
two data series implies a greater degree of confirmation.