thE hAnDbook of tEchnicAL AnALySiSFigure 9.90 Signal Alternation in Opposing (Divergent) Data Trends.Figure 9.91 Signal Alternation in Opposing (Convergent) Data Trends.■ (^) Both the main and supporting data series are exhibiting similar sideways for-
mations (i.e., both data series expanding or contracting together)
■ (^) One data series is expanding or contracting while the other is flat or trending
Figures 9.92 and 9.93 show two out of the 14 idealized scenarios where there
is no signal alternation.
9.6 More Examples of Divergence
In the following sections, we shall examine some real world charts with various
types of divergences in action.9.6.1 examples of price to price Divergence
In this section we shall look at divergence between stocks, funds, futures con-
tracts, and various indices in lieu of oscillators and indicators.