Divergence History
The Divergence History chart, available on each instrument's detail page, visualizes the magnitude and direction of disagreements between PulseGrid's parametric signal (PG Signal) and the market consensus signal (Market Signal) over time.
How It Works
Each time PulseGrid computes a new signal for an instrument, it also fetches the current market consensus from multiple OSINT sources. When these two signals disagree, a divergence event is recorded with a severity classification.
Chart Interpretation
| Element | Meaning |
|---|---|
| Positive bars | PG is more bullish than market consensus |
| Negative bars | PG is more bearish than market consensus |
| Bar height | Magnitude of disagreement (1 = one signal level, 4 = maximum divergence) |
| Yellow markers | Minor divergence (one level apart, e.g., Buy vs. Hold) |
| Orange markers | Moderate divergence (two levels apart, e.g., Buy vs. Sell) |
| Red markers | Significant divergence (three or more levels apart, e.g., Strong Buy vs. Sell) |
Statistics Panel
- Divergence Rate: Percentage of signal readings that contained a divergence
- Avg Magnitude: Mean absolute divergence across all readings
- Total Events: Count of all divergence events in the displayed period
Practical Use
Divergence events are potential contrarian opportunities. When PG's parametric analysis, which incorporates event attribution, macro compatibility, and sentiment analysis, disagrees with market consensus, it may indicate that the market has not yet priced in certain factors that PulseGrid has detected.
Higher severity divergences carry stronger conviction but also higher risk. Use the Accuracy Tracker page to evaluate how often PG's contrarian calls have been validated historically.