Just came across this really solid divergence cheat sheet and honestly it's one of the clearest breakdowns I've seen for understanding RSI divergence patterns. Let me walk you through what makes this so useful.



So basically there are four main divergence types you need to know, and they fall into two categories - ones that signal reversals and ones that signal trend continuation.

Let's start with regular divergence, which is the reversal signal. Regular bullish divergence happens when price makes lower lows but your RSI is making higher lows - this suggests the downtrend might be losing steam and a bounce could be coming. On the flip side, regular bearish divergence is when price hits higher highs while RSI fails to match that with higher highs - that's your warning that an uptrend could be running out of gas.

Then you've got hidden divergence, which is the opposite story - these patterns suggest the existing trend will keep going. Hidden bullish divergence shows up when price makes higher lows but RSI makes lower lows, meaning any pullback is likely just a continuation setup for the uptrend. Hidden bearish divergence is when price makes lower highs while RSI makes higher highs - basically telling you the downtrend has more room to run.

What I like about this divergence cheat sheet is how it puts everything in one visual reference. You've got your four patterns laid out with clear price action vs RSI comparisons, so you can quickly identify which type you're looking at. The summary table at the bottom is especially handy - it gives you the exact pattern to look for and what it typically means for your next move.

The key takeaway with any divergence cheat sheet like this is that it's not a guaranteed signal, but it's definitely worth having in your toolkit. These patterns show you when price action and momentum are starting to disagree with each other, which often precedes a shift in the market. If you're into technical analysis, definitely bookmark this reference.
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