The best types of indicators to use when looking for divergence are oscillators. The most commonly used oscillators for identifying divergence include:
Stochastics
Relative Strength Index (RSI)
MACD
Williams Percent R
We use oscillators as they range between 0 and 100 and help us identify overbought and oversold levels on the chart.

Traders use several technical indicators to identify divergence between price movement and momentum. The Relative Strength Index (RSI) is one of the most popular tools, highlighting bullish or bearish divergence when momentum weakens while price continues trending. Moving Average Convergence Divergence (MACD) is also widely used, especially its histogram, to spot shifts in momentum before reversals. The Stochastic Oscillator helps identify divergence near overbought or oversold levels, making it useful for timing entries. The Commodity Channel Index (CCI) can reveal divergence by showing extreme deviations from average price behaviour. On Balance Volume (OBV) focuses on volume divergence, signalling when buying or selling pressure does not confirm price direction. These indicators do not predict exact reversals but help traders anticipate potential trend changes when combined with price action and proper risk management.