Stochastic Divergence

Stochastic Divergence occurs when there is divergence between the stock price and the Stochastic Oscillator.  When this happens the stock price often follows the Stochastic Oscillator.

Stochastic Divergence

The Stochastic Oscillator uses closing prices in comparison with highs and lows of current trading ranges to indicate the trend of price movements. There are multiple methods for using the Stochastic Oscillator as a trading signal, including Stochastic Divergence and Stochastic Crossover. 

 


Stochastic Divergence Calculation

See Stochastic Oscillator.

Application of Stochastic Divergence

Stochastic Divergence occurs when there is divergence between the stock price and the Stochastic Oscillator.  When this happens the stock price often follows the Stochastic Oscillator.

When a divergence between the stock price and the Stochastic Oscillator occurs, the price often follows the Stochastic Oscillator.

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