🟢 Bullish Divergence
Occurs when price makes a lower low ⬇️
but RSI makes a higher low ⬆️
➡️ Signals weakening selling pressure and a potential upside reversal 🚀
🔴 Bearish Divergence
Occurs when price makes a higher high ⬆️
but RSI makes a lower high ⬇️
➡️ Signals weakening buying momentum and a potential downside reversal 📉
🟢 Bullish RSI Divergence
• 📉 Price makes lower lows
• 📈 RSI makes higher lows
• ⚠️ Signals weakening selling pressure
• 🔄 Possible trend reversal
• 📊 Confirm with volume or momentum indicators before entering ✅
🔴 Bearish RSI Divergence
• 📈 Price makes a higher high
• 📉 RSI makes a lower high
• ⚠️ Signals weakening buying momentum
• 🔄 Possible trend reversal to the downside
• 📊 Confirm with volume or other indicators before trading ✅
📊 Types of Divergence in Trading
There are 4 main types of divergence every trader should know 👇
🔹 Regular Bullish Divergence
🔹 Regular Bearish Divergence
🔹 Hidden Bullish Divergence
🔹 Hidden Bearish Divergence
👉 These are broadly grouped into 2 categories:
🟢 Regular / Classic Divergence
• Signals possible trend reversal
• Often appears near market tops or bottoms
🔵 Hidden Divergence
• Signals trend continuation
• Found during pullbacks in strong trends
Mastering these helps you spot early reversals and high-probability entries 📈⚡
💡 Pro Tip:
Regular divergence = watch for trend reversals 🔄
Hidden divergence = watch for trend continuation 🚀
Combine divergence with RSI, volume, and support/resistance for higher accuracy 🎯
📈 Understanding these 4 types can level up your trading game and help you spot moves before the crowd 💎
Stay sharp. Trade smart. 🧠🔥
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