The biggest lie about divergence in trading

[ciswjtbn23]

The biggest lie in trading is, "Divergence gives the best signals"
we have all read it in countless of books about trading.

I have made several EAs trading both classical and hidden divergence,
the results have been very poor, none of them gives a good signal.
opinions?

maybe it worked 30 years ago when some authors wrote those books?
but I really doubt that, did anyone here have a good result with divergence?
would be interested to hear your thoughts about it.

[cofioqhz43]

Hi roughtrader, I prefer this title http://assets.forexfactory.net/images/smilies/yim/happy.gif

The biggest true about Divergences in trading = BS

All the best for you $$ When nothing goes right ... go left

[Concordhok]

I have fantastic results trading divergence. The thing is though, divergence is just one indicator and like all indicators, it cannot be used in isolation. When it has other factors to support it, such as pre-determined S&R levels, moving average configuration, trend line etc, then it can be incredibly powerful. It can be predicted as well, as the moves that create the divergence can be a giveaway. Take this morning's Dax as an example. The price fell from the Frankfurt open, really dropping away from the London open, stalling just before the 9800 big round number, and rising tentatively. I use multiple time frames, But I was watching the 3 m which I use between the 1 and 10m frames. From 9800, the price pulled the MACD ribbon up off it's low. We then, predictably, fell again heavily off of counter resistance, the price putting in a final very powerful full negative candle which took the price lower, setting up divergence with MACD. This was a typical divergence move.

[KeiraTheri]

Do you think divergences is what makes the price move?