Just came across a really solid breakdown of divergence patterns that finally makes sense of all the confusion around RSI and price action. Honestly, this divergence cheat sheet deserves way more attention because it covers everything you need to spot potential reversals or trend continuations.

So here's the deal with divergences - they basically fall into two camps: regular and hidden. Regular divergence is your reversal signal. When price is making lower lows but RSI is printing higher lows, that's bullish divergence telling you an upside reversal might be coming after a downtrend. Flip it around - higher highs in price with lower highs in RSI - and you're looking at bearish divergence, which suggests the downside could reverse after an uptrend.

Now hidden divergence is different. This one signals trend continuation rather than reversal. When price shows higher lows but RSI shows lower lows, that's hidden bullish divergence, meaning the uptrend probably keeps going after a pullback. The bearish version is the opposite - lower highs in price with higher highs in RSI suggests the downtrend will continue.

What I appreciate about this cheat sheet is how it puts everything side by side. You've got four distinct patterns, each with its own price behavior and RSI behavior, and the interpretation is crystal clear. Regular divergences catch reversals, hidden ones confirm trend strength. Once you internalize these patterns, reading the market becomes way easier. The key is not forcing it - only act on divergences when they align with your broader market structure.