Forex glossary
Regular Divergence
Bullish regular divergence pairs a lower price low with a higher oscillator low; bearish regular divergence pairs a higher price high with a lower oscillator high. It describes a mismatch of corresponding extremes, interpreted as a weakening-momentum warning without establishing reversal timing or certainty.
Illustrative example
How does it work in practice?
Assume price lows at 100 and 97 with corresponding RSI readings of 25 and 32. Price makes a lower low while the oscillator makes a higher low, creating hypothetical bullish regular divergence.
A case to work through
A new high without RSI confirmation
Hypothetical corresponding price highs are 200 and 208, with RSI at 72 and 66.
- Price raises its high by 8 while the oscillator lowers its peak.
- This is regular bearish divergence under the stated matching rule.
What follows? Record a warning and check strategy conditions separately.
Example boundary: The mismatch can persist through further rises; it does not date a reversal.
A useful distinction
Regular Divergence / Hidden Divergence
Regular bearish divergence has a higher price high and lower oscillator high; bearish hidden divergence reverses those relationships.
Check your understanding
Classify the mismatch separately from an entry decision.
Show the answer and explanation
Regular bearish divergence
The new price high lacks oscillator confirmation.
Oscillators without mixed scales
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Related terms
Sources and documentation
- TradingView – RSI
RSI gain/loss calculations, conventional thresholds and divergence interpretation.
Document read: - TradingView – MACD
Main MACD, signal smoothing and the MACD-minus-signal histogram.
Document read:
The example illustrates the mechanism. Check current account conditions and instrument specifications with the provider.