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Aligned swings
A valid comparison uses two corresponding price swing lows or highs and the oscillator values at those same bars.
Lesson · Technical Indicators
Indicator Divergence
Compare aligned price swings with RSI or MACD histogram swings, classify regular bullish and bearish divergence, distinguish divergence from disagreement at unrelated bars, and require price confirmation.
Synthetic educational data
Core concepts
Understand what the indicator calculates, how its parameters affect it, and what it cannot establish by itself.
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Regular divergence
Bullish divergence pairs a lower price low with a higher oscillator low; bearish divergence pairs a higher price high with a lower oscillator high.
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Warning, not trigger
Divergence shows that price and the selected momentum measure changed differently. It does not define entry, invalidation, or timing by itself.
Interactive lesson
Change the inputs, inspect the calculation, and compare the indicator with the underlying price data.
PriceTwo candidate swing lows
RSISame anchor bars
Validate a divergence claim
Use aligned, meaningful swings and describe the exact relationship.
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Choose two price swings
Compare low with low for bullish divergence or high with high for bearish divergence.
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Align oscillator bars
Read the oscillator at the same two bars rather than selecting unrelated extrema.
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Compare direction
State whether price made a higher or lower swing and whether the oscillator did the same or opposite.
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Wait for confirmation
Require a predefined price-structure or entry event after the divergence observation.
Divergence classification
Score 0 / 0Choose the best answer.
Lesson rule
Divergence is a relationship between two aligned swings. It is not valid merely because price and an oscillator appear to point in different directions somewhere on the chart.
Common mistakes
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Connecting unrelated oscillator extremaThe oscillator comparison must correspond to the same price swing bars.
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Calling every disagreement divergenceRegular bullish and bearish divergence have specific higher/lower swing relationships.
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Entering before price confirmsDivergence can persist or fail while price continues in the original direction.
Completion standard
✓
Finish when you can classify the relationship without the labels.
Identify the two aligned price swings, record oscillator values at the same bars, classify the higher/lower relationships, and state the separate price event required before entry.
Calculation note: Divergence detection is sensitive to swing-selection rules. This lesson uses fixed synthetic anchor zones for teaching; automated detection requires a precise pivot definition and confirmation delay.