ARTICLE SYNOPSIS ...NEW TECHNIQUES Quantifying Divergence With The Divergence Index Divergence, a popular technical term used to denote a market movement in one direction when a technical indicator fails to follow it, can forewarn of a reversal in market direction. However, divergence has been difficult to quantify. Here's one software engineer's approach to tracking divergence. By Matt Storz Divergence between market prices and an indicator applied to those prices can provide a strong signal of an impending price reversal. For example, when prices make new highs but the indicator does not, an important market...