Just came across this really clean divergence cheat sheet and honestly it's a game-changer for anyone trying to read RSI properly. Been seeing a lot of traders miss these signals, so figured I'd break down what's actually happening here.

So basically you've got four types of divergence to watch for, and once you understand the pattern it becomes pretty obvious on your charts. The key is comparing price action against RSI - when they're not moving together, that's where the signal is.

First up, regular divergences. These are your reversal signals. Regular bullish divergence happens when price makes lower lows but your RSI is making higher lows - that's screaming potential upside reversal after a downtrend. Flip it around and you get regular bearish divergence with higher highs in price but lower highs in RSI, which typically precedes a downside reversal.

Then there's hidden divergences, which are the opposite play. These signal trend continuation rather than reversal. Hidden bullish divergence shows higher lows in price but lower lows in RSI, suggesting the uptrend will keep running after a pullback. Hidden bearish divergence is the mirror - lower highs in price with higher highs in RSI, meaning downtrend pressure stays intact.

Honestly this divergence cheat sheet format makes it so much easier to spot these patterns in real time. Price vs RSI comparison is straightforward once you know what to look for. The way I use it is quick reference - glance at your chart, identify which pattern you're seeing, and that tells you what the market is likely to do next.

If you're still struggling with RSI signals, having this divergence cheat sheet bookmarked saves a lot of guesswork. The technical setup is simple, the execution is what separates consistent traders from the rest.