Just came across this really clean divergence cheat sheet that breaks down RSI trading perfectly, and honestly it's one of those tools that clicks once you see it mapped out like this.

So here's the thing — divergence is basically when price and RSI are telling different stories. You've got four main patterns to watch, and they split into two categories: ones that signal reversals and ones that signal the trend's just taking a breath before it continues.

Let me walk through the reversal signals first. Regular bullish divergence happens when price makes lower lows but RSI is printing higher lows — that's your signal that downside momentum is fading and an upside reversal could be coming. On the flip side, regular bearish divergence is when price creates higher highs while RSI makes lower highs — momentum's drying up at the top, downside reversal might be next.

Now the trend continuation patterns are where it gets interesting. Hidden bullish divergence shows up as price making higher lows with RSI making lower lows — this usually means after a pullback, that uptrend's about to keep running. And hidden bearish divergence is the inverse: price lower highs, RSI higher highs — downtrend's just consolidating before it resumes.

The beauty of this divergence cheat sheet is how visual it makes everything. You can literally overlay it on any chart and spot these patterns. Price action vs RSI — when they don't match, that's your edge. Most traders miss it because they're only looking at one signal, but when you've got both price and indicator misaligned, that's when setups get really high probability.

If you're building your technical analysis toolkit, having this divergence reference handy is genuinely useful. These patterns work across timeframes too, so whether you're day trading or swing trading, the logic stays the same.