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[Oluti]

A regular divergence is used as a possible sign for a trend reversal.

If price is making lower lows (LL), but the oscillator is making higher lows (HL), this is considered to be regular bullish divergence.

This normally occurs at the end of a down trend. After establishing a second bottom, if the oscillator fails to make a new low, it is likely that the price will rise, as price and momentum are normally expected to move in line with each other.

Below is an image that portrays regular bullish divergence.


Now, if the price is making a higher high (HH), but the oscillator is lower high (LH), then you have regular bearish divergence.

This type of divergence can be found in an uptrend. After price makes that second high, if the oscillator makes a lower high, then you can probably expect price to reverse and drop.

In the image below, we see that price reverses after making the second top.


As you can see from the images above, the regular divergence is best used when trying to pick tops and bottoms. You are looking for an area where price will stop and reverse.

The oscillators signal to us that momentum is starting to shift and even though price has made a higher high (or lower low), chances are that it won’t be sustained.

See the regular bearish divergence at work through this GBP/USD trade handpicked by Pipcrawler!

Did you get all of that? Pretty simple eh?

Now that you’ve got a hold on regular divergence, it’s time to move and learn about the second type of divergence – hidden divergence.

Don’t worry, it’s not super concealed like the Chamber of Secrets and it’s not that tough to spot. The reason it’s called “hidden” is because it’s hiding inside the current trend.

 

[lioralace]

Alright, let’s cut the fluff and talk about regular divergence—none of that robotic jargon, just real talk.

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## Regular Divergence: Your Market Trend "Nope" Button

If you’re into charts and trading—maybe you like pain, who knows—then you’ve probably heard the term “divergence” thrown around. Regular divergence, in particular, is like your market smoke alarm. It doesn’t always go off when you want it to, but when it does, you’d better not ignore it.

### The Basics: What Are We Even Talking About?

Picture this: you’re staring at your chart, coffee in one hand, existential dread in the other. Price is doing one thing, but your favorite oscillator (RSI, MACD, or maybe that weird one your trader friend won’t shut up about) is just not on the same page. That’s divergence. A split. A red flag.

With regular divergence, we’re basically on the lookout for two flavors: bullish and bearish.

### Bullish Regular Divergence—Spotting a Bounce

Okay, so let’s say the price is setting up shop at new lows, each one just a little sadder than the last. But then you notice the oscillator? It’s actually hitting higher lows. Wait a sec—shouldn’t they match up? Not here. This is price saying, “I’m dying,” while momentum shakes its head, “Nah, not really.” That signal right there? The downtrend might be tapping out soon. Prime time to look for a reversal. The pros dive in here when price is low, ready for that bounce.

### Bearish Regular Divergence—Party’s Over

Flip it. Now the price is flexing new highs, acting like it’s going to the moon, but momentum? It just sighs and churns out lower highs. Uh-oh. That’s momentum signaling, “Sorry folks, the juice is gone.” This is where you prep for a drop. If your oscillator can’t match the price’s energy, odds are, buyers are losing interest, and a reversal downward is lurking nearby. Time to consider trimming your positions or even shorting.

### How To Actually Use This (Without Overthinking)

Honestly, people love to make this harder than it is. Just look where price makes those dramatic highs or lows—and see if your oscillator’s snubbing that move. Regular divergence isn’t some magic wand, but it’s a great heads-up. When you catch it, you’re basically saying, “Hey, something’s about to give.”

This is best for picking out tops and bottoms—tops when bearish divergence pops up, bottoms when it’s bullish. Oscillators are basically snitches—they’ll tell you before price does.

### Example Time—GBP/USD

Let's drag GBP/USD into the spotlight. Picture the pair climbing to a new high, but the MACD or RSI drags its feet and just won’t follow. Spoiler: GBP/USD often tanks after moves like that. If you catch that divergence fast enough, you’re in for some solid pips when the drop comes.

### Heads-Up: Hidden Divergence Is Next

Congrats, you’ve made it this far without getting bored—that’s half the battle. Next up, we’ll tackle hidden divergence, which is actually about trends sticking around, not flipping. And no, it’s not that hard to spot, despite what the name makes you think.

Stick around—the next one’s juicy.

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Want more on hidden divergence? Just say so—I’ll knock out another post, no sweat.