IndicatorsAdvanced
Divergence
Price and an indicator such as RSI or MACD moving in opposite directions.
- What it means
- A new price high without a new indicator high can mean momentum is fading.
- What to watch
- Confirmation from price itself, such as a break of a trend line.
- How Compass Alpha uses it
- Context only; not used in Compass scores.
More in Indicators
Moving averages
The average closing price over a set number of days, drawn as a smooth line (for example 20 or 50 days).
RSI (Relative Strength Index)
A 0 to 100 measure of how strong recent gains are compared with recent losses.
MACD
Moving Average Convergence Divergence: the gap between a fast and a slow average, with a signal line.