How to avoid false divergence?

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.


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.

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…


Simple answer…don’t use any indicators and switch to price action. I’m biased though :wink:

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”