After seeing a Regular Divergence using say a stock or MACD together with candlestick reversal patterns is it safe to say a trend has actually reversed at all - can we assume this? i feel its all well and good saying its a trend AFTER the event but can we “predict” it as such?
Divergence is rubbish, diverge from what? From itself? It’s only trying to read into stuff that just isn’t there, just like looking at an MA, you can stick an MA on your chart and with the right value it will look like a support line, but it just isn’t there, same with divergence, it just isn’t there.
Divergence certainly fails, but its one of the more reliable methods, particularly so if you use a confluence of regular and hidden divergence across multiple timeframes. You want the potential reversal on the faster timeframe to coincide with a hidden divergence reentry signal on the slower timeframe.
See this is what confuses me ie the school of pipsology seems to love divergence and so does a lot of people but then a lot do not like it. I also keep hearing about KEEP IT SIMPLE STUDID yet have found no solid evidence that a system of that nature exists…Just when I keep thinking im getting somewhere I get knocked back !!!