There are two types of regular divergences: bullish<\/strong> y bearish<\/strong>.<\/p>\n\n\n\n If the price is making lower lows (LL), but the oscillator is making higher lows (HL)<\/strong>, this is considered to be regular bullish divergence.<\/p>\n\n\n\n This normally occurs at the end of a DOWNTREND.<\/p>\n\n\n\n After establishing a second bottom, if the oscillator<\/a> 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.<\/p>\n\n\n\n Below is an image that portrays a regular bullish divergence<\/strong>.<\/p>\n\n\n\n Now, if the price is making a higher high (HH), but the oscillator is lower high (LH)<\/strong>, then you have regular bearish divergence.<\/p>\n\n\n\n This type of divergence can be found in an UPTREND.<\/p>\n\n\n\n After price makes that second high<\/strong>, if the oscillator makes a lower high<\/strong>, then you can probably expect the price to reverse and drop<\/strong>.<\/p>\n\n\n\n In the image below, we see that the price reverses after making the second top.<\/p>\n\n\n\n As you can see from the images above, the regular divergence is best used when trying to pick tops and bottoms.<\/strong><\/p>\n\n\n\n You are looking for an area where the price will stop and reverse<\/strong>.<\/p>\n\n\n\n The oscillator signals to us that momentum is starting to shift<\/strong> and even though the price has made a higher high (or lower low), chances are that it won\u2019t be sustained.<\/p>\n\n\n\nRegular Bullish<\/em> Divergence<\/h2>\n\n\n\n
![\"Regular](\"https:\/\/bpcdn.co\/images\/2016\/05\/grade11-blue-regular-bullish-divergence.jpg\" "\\"Regular")
<\/a><\/figure>\n\n\n\nRegular Bearish<\/em> Divergence<\/h2>\n\n\n\n
![\"Regular](\"https:\/\/bpcdn.co\/images\/2016\/05\/grade11-blue-regular-bearish-divergence.jpg\" "\\"Regular")
<\/a><\/figure>\n\n\n\n