Divergence is a trading pattern in which the relationship between price action and an oscillator indicator is measured.

The disparity index can take either a positive or a negative value. A positive value indicates that the asset’s price is rapidly increasing, while a negative value indicates that the price is rapidly decreasing. A value of zero means that the asset’s current price is exactly consistent with its moving average.

The downside to the discretionary trading style is that trading decisions are more susceptible to the strong emotional effects of managing financial risk. Also, depending on the time frame, it requires more attention to the market than mechanical or automated trading methods.

An account in which the account holder gives power to a company or trading body to handle buy/sell transactions. The trading body also has power to choose which currencies to buy or sell.