Here is an example of things going wrong and why we should pay attention to the signals.
Sorry about all the lines on the chart but I have numbered the points of interests.
1) This was a regular bullish div which should send the price back to the EMA so we can measure that and indeed it did so.
2) Was where the bulls found support so we would expect price to run up to X
3) Stopped the northern run in the form of a continuation div.
4) The bull support was smashed and the bears found support instead.
5) Is a 50% of the AB continuation div.
As far as I see it at this time is we are in don't know territory, in this case we sit on the side until a bus comes along we can ride on.
Sorry about all the lines on the chart but I have numbered the points of interests.
1) This was a regular bullish div which should send the price back to the EMA so we can measure that and indeed it did so.
2) Was where the bulls found support so we would expect price to run up to X
3) Stopped the northern run in the form of a continuation div.
4) The bull support was smashed and the bears found support instead.
5) Is a 50% of the AB continuation div.
As far as I see it at this time is we are in don't know territory, in this case we sit on the side until a bus comes along we can ride on.
6