Bullish Divergence

Price = Lower Low, RSI = Higher Low

Misleading for a strong trend - Could keep going with no reversal

Works best forming after an OVERSOLD reading

Bearish Divergence

Price = Higher High, RSI = Lower High

Misleading in strong UPtrend. Could keep going with no major reversal.

Work best forming after an OVERBOUGHT reading.

Negative Reversal

Price = Lower High, RSI = Higher High

Price overrules Momentum

NOT in overbought territory

Between 50-70

Positive Reversal

Price = Higher Low

RSI = Lower Low

Price overrules momentum

NOT in oversold territory

Between 30-50

Bearish Failure Swing

Ignores price + concepts of divergence

Impending reversal

-Above 70

-Pulls back below, bounces

-Doesn't exceed 70

-Breaks prior low

Bullish Failure Swing

Ignores price + concepts of divergence

Impending reversal

-Below 30

-Bounces above

-Retreats but holds above 30

-Breaks prior high