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Anyways, I will address divergence in another post, because I think it needs to be talked aboutIgnored
Whenever Jim mentions divergence in his webinars he says the same thing. Divergence will kill you in a trending market. Rac also says that divergence is the account killer because it can simply go on and on and on as price rises higher.
It's most useful for me as a confluence at double and triple tops. But if I use it to take less than stellar PA then what happens is that I get stopped out, a few days later a pitbull pinbar appears and I wonder why I didn't wait.
Confluence really is magic. Taking a few simple things that individually have people scratching their heads and wondering why they don't work, and just looking for the places where they all line up..... this alone saved my ass trading. Now I am beginning to have an instinct for when a trade isn't "confluenced enough"
I used to just look at how sweet the pinbar was. It was my primary focus. Then I went through a phase of focussing on location location location. I guess now these things are beginning to bed within my DNA I can see them quicker and don't throw my focus on them. Now, for me, it's all about "where is the first area of trouble?"
Seriously, if you can identify that first area of trouble where price might turn around, your win rate can go through the roof. Because that is where you go to break even, no matter what. If you get taken out and price continue to become a killer trade you end up standing and applauding. Because it wasn't a loss. Eventually, and I do mean eventually, you can start to see which price action bars are likely to smash through PPZs and which aren't. That also depends on the kind of market we're in.
My focus these days is to never post chart to a senior and have him say "you missed that PPZ. that's what turned price around".
The real beauty of this stuff and why it beats anything else out there is that it is a method that can be adapted into any number of amazing systems, or even used to enhance your existing systems. There isn't a system out there that wouldn't benefit from a little PA confirmation IMO.
(Riffing on your post Joel, not a reply to you as such. If anyone knows all this it's you... )