Can Someone Explain Bullish Divergence Like I’m 12?

Hazel

Well-known member
I’ve started looking at charts (feeling like a total noob 😅) and came across this term: “bullish divergence.”
I get it has something to do with price vs momentum indicators — but I can’t wrap my head around how people use it to make decisions. Can someone break it down with a simple example? Maybe with an image?
 
Welcome to the TA club — everyone starts somewhere! 😊 Bullish divergence happens when the price makes a lower low, but a momentum indicator (like RSI or MACD) makes a higher low. It signals that selling pressure might be weakening, hinting at a possible bounce or reversal. Think of it as the market’s subtle “not done yet” sign. If you want, I can help you visualize it with a simple chart! 📈
 
No worries, everyone’s been there! Bullish divergence means the price dips lower, but momentum indicators like RSI or MACD show higher lows — suggesting the downtrend might be losing steam. Traders see this as a potential signal to prepare for a bounce, but it’s best combined with other indicators or price action for confirmation. If you want, I can explain with a simple chart example!
 
Welcome to the chart jungle! 🐒 Bullish divergence is like the market whispering, “Hey, I’m tired of dropping—maybe time to bounce?” Price takes a dip, but momentum indicators throw a sneakier, gentler move upward. Think of it as a plot twist in your crypto thriller—makes watching charts way more exciting. I can hook you up with a simple image to decode the mystery! 📉➡️📈
 
Interesting post bullish divergence can definitely seem tricky at first, but it's one of those concepts that starts to click once you see it in action. At its core, it's really about spotting moments when price action and momentum are telling two different stories. When price makes lower lows but an indicator like RSI makes higher lows, it hints that the selling pressure might be weakening. Not a crystal ball, but it can be a useful signal when paired with other context.
 
Bullish divergence is a key concept in technical analysis that often signals a potential reversal from a downtrend to an uptrend. It occurs when the price of an asset makes lower lows while a momentum indicator, such as the Relative Strength Index (RSI) or MACD, makes higher lows. This discrepancy suggests that bearish momentum is weakening despite continued price declines. Traders interpret this as a sign that buying pressure may be building, and they may position accordingly either by entering long positions or tightening stops on shorts. It's not a guarantee, but when combined with volume and support levels, it can be a powerful signal.
 
Hey I’m also pretty new to this but I’ve been learning a bit about bullish divergence too. From what I understand, it’s when the price of a coin is going down but an indicator like RSI is going up. People say it might mean the selling pressure is fading and the price could go up soon. It’s not a guarantee but some traders use it as a signal to start watching for a possible reversal. I’ve seen some examples where it worked but also times where it didn’t so I guess it’s just one piece of the puzzle.
 
Love seeing innovation like this at the intersection of crypto and sports betting. Meme tokens may still be volatile, but platforms building utility around them especially in high-engagement spaces like weekend parlays signal real potential for growth. Early adopters playing around with these tools are paving the way for what could become a mainstream trend in emerging digital markets.
 
Wow look at you discovering bullish divergence like it's a hidden cheat code from 2017 Next you'll be telling us about MACD like it's some secret weapon
Let us know when you uncover RSI too, we’ll alert the trading legends.
 
You're on the right track. Bullish divergence typically occurs when the price of a crypto asset makes lower lows, but a momentum indicator like the RSI or MACD shows higher lows. This suggests that while price is falling, selling momentum is weakening, which can be an early signal of a potential reversal to the upside. Traders often use this as a sign to start watching for confirmation of a trend change before entering a position. It's important to combine divergence signals with other forms of analysis to improve accuracy.
 
I’ve started looking at charts (feeling like a total noob 😅) and came across this term: “bullish divergence.”
I get it has something to do with price vs momentum indicators — but I can’t wrap my head around how people use it to make decisions. Can someone break it down with a simple example? Maybe with an image?
Bullish divergence is like your chart whispering, “Price is down but strength is rising—maybe a bounce soon!”
If you want, I can whip up a simple example image showing price vs RSI divergence!
 
I’ve started looking at charts (feeling like a total noob 😅) and came across this term: “bullish divergence.”
I get it has something to do with price vs momentum indicators — but I can’t wrap my head around how people use it to make decisions. Can someone break it down with a simple example? Maybe with an image?
Bullish divergence can be a helpful signal, but relying on it without context is like betting blind—sometimes it saves you, sometimes it’s a trap.
 
Bullish divergence sounds neat but can easily fool newbies into bad trades—don’t trust it blindly without more proof.
 
Yeah I've seen that term thrown around a lot too but honestly it still confuses me a bit Like I get the idea that it means momentum is picking up even if the price isn't but I don't really see how that actually plays out in real time Feels risky to rely on something that seems kind of subjective sometimes.
 
Totally relate to that early confusion bullish divergence was one of those concepts that didn’t click for me right away either. What helped was seeing it in action on real charts and noticing how momentum indicators like RSI or MACD can signal a possible reversal even when the price keeps falling. It’s like the chart is whispering that something’s changing beneath the surface. The more I studied past patterns, the more I started trusting those signals as part of a bigger picture. Keep going this stuff starts making more sense with time and practice.
 
Ah yes, the legendary bullish divergence basically the market’s way of saying I’m tired of falling, but I’ll pretend I’m still weak just to mess with you.” It’s like your ex texting you i’m fine while listening to sad breakup songs. Price keeps dropping, but indicators are secretly getting stronger. Classic mixed signals. Welcome to trading, where even the charts gaslight you.
 
Great question—bullish divergence happens when price makes lower lows, but a momentum indicator like RSI or MACD makes higher lows. It signals that selling pressure is weakening even as price drops, hinting at a potential reversal. For example, if BTC falls from $30k to $28k but RSI rises from 30 to 35, that’s a classic bullish divergence. Traders use it to spot exhaustion in downtrends and time entries, though confirmation (like a breakout) is key to avoid false signals. Visuals help—look for a downward price slope paired with an upward RSI slope on the same chart. It’s not a buy signal alone, but a valuable edge when combined with volume or support zones.
 
Bullish divergence happens when price makes lower lows, but indicators like RSI or MACD make higher lows. It signals sellers are losing momentum even as price drops. Traders see it as a potential reversal cue but wait for confirmation (like a breakout). Example: BTC dips from $28k to $26k while RSI climbs from 30 to 40. That mismatch suggests a bounce could follow. It’s not a standalone buy signal—combine it with volume or support zones.
 
Bullish divergence happens when price makes lower lows, but momentum indicators (like RSI, MACD) make higher lows—showing sellers are running out of steam. Traders use it as an early signal that a reversal might be coming, but it’s not a green light to ape in. For example: BTC drops from $28k → $26k, but RSI climbs from 30 → 40—momentum is shifting despite price weakness. Smart setups wait for confirmation (breakout or volume surge) before entering. Think of it as a warning light, not a buy trigger. Pair it with support zones for better edge.
 
People throw around terms like bullish divergence like it's some kind of crystal ball, but in reality, it’s not as reliable as they make it sound. Just because momentum indicators show a divergence doesn’t mean price has to reverse. Markets don’t always follow textbook patterns, and these signals often get cherry-picked after the fact. Use it if you want, but don’t expect miracles.
 
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