What is Convergence?

In an investment context, convergence refers to the confluence of two data points, such as when the current price of an asset and its relative strength index (RSI) both increase. The opposite of convergence is divergence, where two technical indicators go in opposite directions. Convergence can also be classified as a process whereby the price of a futures contract gets closer to the spot price of an underlying commodity — thus converging — as the delivery date of the contract expires.