How to improve at Divergence signals

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Hi guys,

I’ve been trading divergences for a good few months and they seem a great thing to trade. However, I am interested in your opinion on something:

How do you decide which divergence signal to listen to. For example using a 4HR chart you can clearly see divergence from the previous high/low to the new one. Say this is bullish divergence. But if I go back a few days on the chart and connect that previous high/low with the new one, I find bearish divergence. So my question is which signal is the most accurate? One based over a longer time frame or one that is closer to you current time?

Thanks a lot
Graham

2

I’m no divergence expert but I’d go for the easiest signals to see as per the sell warning on my sample Dow Jones chart here.

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3

Thats what im thinking too. I just got taken out badly the last week on the 4hr charts. The news and this virus has made things really challenging. Have you found this too?

4

I dont really understand the example of bullish and bearish, do you have a chart you can post or point to what day and time. Generally the most recent divergence is the most reliable but sometimes it can build over time.

5

I’m quite a cautious trader. Yes the market has been tricky. For me last week I’m disappointed I missed the strong move against USD.

6

I prefer a longer time frame. Drilling it down has always created false moves for me.