I'm interested in applying divergence strategies to my trading. Earlier, i encountered lot of stop outs as I used to enter the moment divergence appears. Thanks to Babypips education & community, I learnt to reduce it to some extent. I have added filters (MACD crossover, divergence in two indicators, overbought/sold area) to reduce number of false divergence entries. However, the level of confidence in applying it requires further improvement. I require your inputs on the following:
a) Thoughts on entry/exit. How can we effectively combine tools like bollinger bands, Fibonacci with divergence for entry & exits?
b) How to re-enter a trade if we miss-out on the initial divergence entry?
c) Does it work in all timeframes? So far, I have used it along with daily support/resistance? can we look at H1/H4 support/resistance levels and apply this strategy using smaller timeframe entries?