DIVERGENCE CHEAT SHEET

A. REGULAR DIVERGENCE

BIAS PRICE OSCILLATOR DESCRIPTION SAMPLE CHARTS

Indicates
underlying
strength. Bears
are exhausted.
Lower
BULLISH Higher Low (HL) Warning of
Low (LL)
possible trend
direction change
from downtrend
to uptrend.

Indicates
underlying
weakness. Bulls
Higher are exhausted.
BEARISH High Lower High (LH) Warning of a
(HH) possible trend
direction change
from an uptrend
to downtrend.
 B. HIDDEN DIVERGENCE

BIAS PRICE OSCILLATOR DESCRIPTION SAMPLE CHARTS

Indicates
underlying
strength. Good
entry or re-entry.
Occurs during
Higher
BULLISH Lower Low (LL) retracements in
Low (HL)
an uptrend. Nice
to see during
price retest of
previous lows.
“Buy the dips.”

Indicates
underlying
weakness.
Found during
Lower
Higher High retracements in a
BEARISH High
(HH) downtrend. Nice
(LH)
to see during
price retests of
previous highs.
“Sell the rallies.”.