Been trying to spot divergences on my charts but keep missing them or getting false signals.
Looking for something simple that shows the main patterns to watch for. Most stuff online seems too complicated or doesn’t work when I actually try it.
Would save me from making more bad calls based on what I think I see.
Regular divergence works better than hidden patterns in my experience. The key is waiting for confirmation before jumping in because divergences can stay wrong longer than you expect.
Stochastic oscillator shows cleaner divergences than RSI sometimes, especially on shorter timeframes. When price hits a new high but stochastic doesn’t follow, that’s usually a solid signal.
Don’t force it though. Clear divergences are rare so patience helps avoid those false signals you mentioned.
Check divergences on 5min charts with volume dropping. Caught three good signals yesterday using this setup.
Skip the cheat sheets and focus on price action first. Divergences mean nothing if you can’t read what price is actually doing at key levels.
I use RSI on 15-minute charts and only look for divergences at obvious support or resistance zones. If price is making new highs but struggling to break through a previous resistance level, then I check if RSI is making lower highs.
The biggest mistake is hunting for divergences everywhere. They only matter at levels where price already wants to reverse. Save yourself the headache and learn support/resistance first, then add divergences as confirmation.
MACD divergences give cleaner signals than oscillators:
• Bearish: Price new high, MACD histogram lower high
• Bullish: Price new low, MACD histogram higher low
Confirm with volume decrease on divergence.
Most cheat sheets overcomplicate things. I learned this the hard way after blowing $300 following complex divergence patterns that looked perfect on paper.
What actually works is focusing on just regular bearish and bullish divergences. Price makes higher highs while RSI makes lower highs, or price makes lower lows while RSI makes higher lows.
I missed so many obvious signals because I was hunting for fancy hidden divergences instead of the basic ones staring at me.