Divergence – Early Warning of Trend Reversal

📊 Divergence occurs when price action and indicator (like RSI/MACD) move opposite. It signals weakness in current trend. ✅ Types: Bullish Divergence: Price makes lower lows, RSI makes higher lows → potential upside reversal. Bearish Divergence: Price makes higher highs, RSI makes lower highs → potential downside reversal. 📌 Example: Stock rallies from ₹300 → ₹350 → ₹370, but RSI falls from 70 → 65 → 60 → bearish divergence → reversal likely. 🧠 Divergence doesn’t give exact entry, but acts as an early alert system for traders.