Good entry technique for MACDH divergences?

Hi all,
So time for my first post.
I am mostly looking for price action setups these days, but one of my old trusty setups was the MACD histogram divergence, as learnt from Alexander Elder.

As i get better at trading I realise that my hit rate on this setup was probably not as good as it could have been as i never really learnt a good entry technique. I wonder - does anyone have any advice? I have been entering like this:

  • Identify valid MACDH divergence on Daily (0 line MUST Be crossed)
  • Wait for MACDH to tick down, whilst price still remains in divergence.
  • Enter with a buy stop 4 ticks above/below the latest candle in the direction i think price will move,
  • A stop loss above most recent price high/low in the opposite direction i think the market will trade.

This setup has worked for me, but as i improve as a trader and have learnt to backtest my setups, i realise i got lucky - this setup has under a 50% success ratio in my tests. It seems to me divergences often carry on much longer than you think, leading to possible large drawdowns unless you use a stop, and in order to hold them, you likely need to trade without a stop and cross your fingers waiting for a reversal… something i am no longer willing to do.

Any thoughts on a better setup to trade this, would be greatly appreciated.

Thankyou friends