Trading Temple

RSI Divergences Cheatsheet

Regular Bullish Divergence Regular Bearish Divergence

Price shows a lower low Price shows a higher high

RSI shows a higher low RSI Shows a lower high

Indicates trend change Indicates trend change

Hidden Bullish Divergence Hidden Bearish Divergence

Price shows a higher low Price shows a lower high

RSI shows a lower low RSI shows a higher high

Indicates trend continuation Indicates trend continuation

General rules:

Regular divergences indicate trend reversal

Hidden divergences indicate trend continuation

For bullish divergences check the lows

For bearish divergences check the highs

Regular divergences give a stronger indication compared to hidden divergences

Higher timeframe divergences give a stronger indication compared to lower timeframes