Though I haven't had the opportunity to experiment with it yet, I've recently taken an interest in divergence trading. To me, the concept of looking for instances where price and momentum do not move in line with one another, makes reasonable sense. Anyway, I was looking back over some charts, trying to spot divergence setups, and I've noticed that they occur commonly and tend to be very reliable (Particularly on the M15 gold chart, using a Stoch(14,3,3)).
What experience have you had with divergence trading? Why isn't this approach more popular; what's the catch? I'm very new to trading, so I've not had enough experience to make a proper judgements about things like this. Any help would be most appreciated.
Regards
What experience have you had with divergence trading? Why isn't this approach more popular; what's the catch? I'm very new to trading, so I've not had enough experience to make a proper judgements about things like this. Any help would be most appreciated.
Regards