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Bullish Divergence

Mr. Ross can you tell me exactly what is meant by "Bullish Divergence?"

It's really very simple. A Bullish Divergence occurs when prices fall to a new low while a technical indicator fails to reach a new low. This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often, but not always, a bullish divergence marks the end of a downtrend.

The technical indicator is usually a momentum indicator like Stochastics, RSI, %R, or MACD, all of which are based on detrending an EMA.

 

Comments 1

Guest - Earl Stallmann on Friday, 14 August 2020 12:24

Joe's bio says he's been mentoring for 27 years. I think it's at least 28. There were seven of us in a three day educational session in January of 1992. I think it was only the second of Joe's training sessions.

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Joe's bio says he's been mentoring for 27 years. I think it's at least 28. There were seven of us in a three day educational session in January of 1992. I think it was only the second of Joe's training sessions. -
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Thursday, 24 September 2020

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