Page 54 - FINAL CFA I SLIDES JUNE 2019 DAY 4
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Session Unit 3:
13. Technical Analysis
LOS 13.e: Describe common technical analysis indicators (price-based, momentum
oscillators, sentiment, and flow of funds)., p. 323
Convergence occurs when the oscillator shows the same pattern as prices (e.g., both reaching
higher highs) –suggests trend is likely to continue, and
Divergence occurs when the oscillator shows a different pattern than prices (e.g., failing to reach
a higher high when the price does) –potential change in price direction.
