Just realized most traders are chasing RSI divergences like they're magic signals. They're not. I've watched so many people get rekt because they're taking divergences in random spots with zero context.

Here's what actually matters: location, location, location. A bearish divergence forming in the middle of nowhere? Ignore it. Price doesn't reverse because your RSI indicator said so. It reverses because there's actual structure underneath—resistance, supply zones, or liquidity pools that give the setup teeth. Without that anchor, momentum just keeps pushing through and you're sitting there holding a losing trade.

The real cheat sheet for RSI divergence trading comes down to confluence. I've seen RSI print three, four divergences while price just keeps grinding higher. That's the trap. You need invalidation levels tied to actual structure, not just a technical pattern. Taking divergences too early without the right context is literally how accounts blow up.

Liquidity is what fuels the actual reversal. Think about it—price sweeps equal highs, grabs the stops, then forms a divergence at that level. Now you have something. But if that divergence is forming 5% below any meaningful liquidity pool? Worthless. The market needs fuel to turn around.

Support and resistance define where the auction actually matters. Divergences at respected macro levels? Valid. Divergences in no man's land? Skip them. Price has memory at levels where it struggled before. If your setup isn't forming at a level that historically mattered, you're just guessing.

The divergence alone is never the trade. It's confirmation. A divergence at 0.75 Fib + supply zone + liquidity sweep + macro resistance—that's a setup. That's when you actually have an edge. Most people see the divergence and immediately short or long without checking if there's real confluence underneath. That's the difference between a legitimate trade and a guess that'll drain your account.

Wait for the ones at key levels with proper structure. That's the actual RSI divergence cheat sheet nobody talks about.