Just realized how many traders are still confused about divergence patterns. So let me share this divergence cheat sheet breakdown that finally makes it click.

Basically there are two main categories - regular divergence and hidden divergence. They tell completely different stories about what the market's about to do.

Regular divergence is your reversal signal. With regular bullish divergence, you see price making lower lows but RSI is actually making higher lows. That's when you should watch for a potential upside reversal after a downtrend. It's like the price is going down but momentum is weakening - classic setup. On the flip side, regular bearish divergence shows price making higher highs while RSI makes lower highs. That's your signal a downside reversal could be coming after an uptrend.

Now hidden divergence is totally different - this one tells you the trend is probably gonna keep going. Hidden bullish divergence happens when price makes higher lows but RSI makes lower lows. Counterintuitive right? But it actually signals that uptrend will continue after a pullback. Same logic for hidden bearish divergence - price makes lower highs while RSI makes higher highs, suggesting the downtrend has more room to run after a bounce.

The way I remember it: regular divergence = trend change incoming. Hidden divergence = trend keeps rolling. Using this divergence cheat sheet framework has genuinely improved how I read the market. Price action tells one story, RSI tells another, and when they disagree that's where the real edge is.

If you're still reading charts the old way, honestly worth spending 10 minutes to lock in these divergence patterns. Game changer for spotting reversals vs continuations.