Just came across this really solid reference on RSI divergence patterns and honestly, it's one of those things that clicks once you see it laid out properly. So here's what I'm seeing with this divergence cheat sheet.

There are basically four types of divergence you need to know, and they split into two camps: regular divergence (which signals potential reversals) and hidden divergence (which suggests the trend's gonna keep going).

Let me start with regular divergence since that's the reversal play. Regular bullish divergence happens when price is making lower lows but your RSI is actually printing higher lows. That's the setup you want to see at the bottom of a downtrend because it often precedes a move back up. On the flip side, regular bearish divergence is when price makes higher highs but RSI makes lower highs. This typically shows up after an uptrend and can signal a reversal to the downside.

Now hidden divergence is where things get interesting if you're thinking about continuation trades. Hidden bullish divergence occurs when price creates higher lows but RSI creates lower lows. This pattern usually means the uptrend will keep rolling after a pullback. Then there's hidden bearish divergence, which is lower highs in price paired with higher highs in RSI. That's your signal that the downtrend probably isn't done yet.

What I like about having this divergence cheat sheet all organized like this is you can quickly reference which pattern means what. Price action and RSI alignment tells you so much about what's likely to happen next, whether it's a reversal setup or just a breather before the trend continues. Once you internalize these four patterns, reading the market gets a whole lot clearer.