1๏ธโฃ Regular Bearish Divergence
Price makes higher highs ๐
Indicator (e.g., RSI, MACD) makes lower highs ๐
๐ Signal: Trend reversal (downside likely).
2๏ธโฃ Hidden Bearish Divergence
Price makes lower highs ๐
Indicator makes higher highs ๐
๐ Signal: Continuation of downtrend.
3๏ธโฃ Exaggerated Bearish Divergence
Price forms a double top (equal highs) โ
Indicator makes lower highs ๐
๐ Signal: Strong bearish reversal.
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๐ข Bullish Divergences (Bottom Row โ Trend going up)
4๏ธโฃ Regular Bullish Divergence
Price makes lower lows ๐
Indicator makes higher lows ๐
๐ Signal: Trend reversal (upside likely).
5๏ธโฃ Hidden Bullish Divergence
Price makes higher lows ๐
Indicator makes lower lows ๐
๐ Signal: Continuation of uptrend.
6๏ธโฃ Exaggerated Bullish Divergence
Price forms a double bottom (equal lows) โ
Indicator makes higher lows ๐
๐ Signal: Strong bullish reversal.
HERE is the image ๐

โ In short:
Regular Divergence = Reversal signal
Hidden Divergence = Trend continuation
Exaggerated Divergence = Strong reversal from double tops/bottoms
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