Should Divergence, when caused by news be taken seriously?

Hello,

Just a quick question, I was wondering if the pro traders take divergence that was caused by news or the FOMC seriously or not.

I was burned by this kind of divergence a couple of times and thought to question it here.

Thanking you in advance.

Mohammad Reza.

unfortunately dont understand what you mean by "divergence" in this situation !

mp

Thank you Mr.Parker for your reply,

You know when they say keep your eyes on the indicator and see if you notice a bullish or bearish divergence with price and your indicator.

Well a few times I noticed a bearish divergence in my indicator but it was caused by news, so I was just wondering if that was valid or not?

Take a look at the screen shot below, I thought I noticed a bearish divergence with the price as I've read in books before, but that spike just before the divergence was caused by news, so I placed a sell order, but the price never retraced even a little bit.

So either I'm going about this divergence business the wrong way or it becomes invalid when it's caused by news.

Thank you again for your interest.

Mohammad Reza.

I mainly look for divergences on MACD (standard settings). I have attached 2 charts to make the picture clearer.

Trading soloing on divergence is a waste of time and money. I rarely care for a single divergence but I get way more interested if I see multiply (triple and in very, very rare occasions quadruple) but it cannot be traded profitable alone. Add a break of trendline or i.e price-pattern along and you might be on to something.

Thank you aediaz1 for your explanation, I have a long way to go still.

Golden words aediaz1