Hello everyone,
Could anyone help me with how to determine whether if I see a true divergence signal on the MACD or its not?
Quick answer - you can’t. Nothing is for certain, you take the risk.
Instead of following the divergence blindly, try to trade it when it appear’s around a key level like support or resistance and also trading in line with bias helps a lot. I do use divergence but only along with the other tool’s. Jus my 2 cent’s.
Carl89,
I guess that strategy of urs does make more sense, and give just some more assurance about whether its a fake/true divergence. For sure this will help me in decision making.
Thanks
yes…as he said…we need some conformations…like r\s levels…trend lines, candle patterns, etc…so that it will more accurate…but all these r going to fail…if we trade them in lower time frames…
HOPE ITS HELP FULL…
Simple answer…don’t use any indicators and switch to price action. I’m biased though 
I used to use RSI divergence for a good 18 months, until I realized that significant divergence does occur more times than not at key levels of S&R. This then begs the question “why trade divergence at all”