There are basically two types of divergence trend continuation and trend reversal 1. trend reversal there are two types of divergence a. regular bearish divergence :- price makes higher high and indicator makes lower high b. regular bullish divergence :- price makes lower low but indicator makes higher low. its time for reversal.
2. in trend continuation there are further two type of divergence :- a. hidden bearish divergence :-which means when price make lower highs but indicator makes higher high it is sign of trend continuation . b. hidden bullish divergence :-which means when price make higher lows but indicator makes lower lows it is sign of trend continuation.