Divergence is a powerful tool in forex trading. There are three types of divergence: positive signal, negative signal, and sideways momentum. Positive signal divergence happens when the price is making lower lows, but the indicator is making higher lows. Negative signal divergence happens when the price is making higher highs, but the indicator is making lower highs. Sideways momentum divergence happens when the price is moving sideways, but the indicator is trending higher or lower.