There are two types of divergences:
- Regular divergence
- Hidden divergence
Each type of divergence will contain either a bullish bias or a bearish bias.
Since you’ve all be studying hard and not been cutting class, we’ve decided to help y’all out (cause we’re nice like that) by giving you a cheat sheet to help you spot out regular and hidden divergences quickly.
Whew! That’s quite a lot to remember, isn’t it? We’ll give you two options:
- You can write this all down in your palm and look back on it while trading. If you’re the type who gets sweaty palms when you’re nervous, we wouldn’t recommend this.
- You can simply bookmark this page and just revisit it when you mix up those higher lows, lower highs, lower lows, and higher highs. You don’t want to make a wild guess while coming up with a trade, do you?