When a stock or index keeps hitting new lows (highs) while falling or rising, and some technical indicators do not follow the new lows (highs), this is called deviation.
Usually refers to the index deviation in the financial trading industry, such as stock futures spot and other financial industry quotation software. The reasons for deviation can be divided into the following categories:
First, the existing indicators deviate from the known exponential trajectory, which is unconventional.
Second, the existing price deviates from the original known price trajectory, which is unconventional.
Third, the existing price deviates from the known exponential trajectory, which is unconventional.
Four: the price hit a new high or a new low and the index did not hit a new high or a new low.
Possible consequences of indicator or price deviation:
If the market price is too high or too low, the possibility of rebound or withdrawal is quite high. Usually this time is the best time for investors to place orders or hold positions in the market.
Usually divided into top deviation and bottom deviation. Top deviation is price innovation without index innovation, while bottom deviation is price innovation without index innovation.