Divergence Strategies on Advanced Charting Tools - What's Your Go-To?

Hey folks, diving deep into advanced charting tools lately and focusing on how to best leverage divergences. I've been playing around with MACD and RSI on TradingView, particularly looking for hidden divergences on higher timeframes (4H and Daily) for altcoins.

My current approach involves:

• Identifying clear bullish or bearish divergences on RSI/MACD.
• Confirming with price action – is the divergence happening near a significant support or resistance level?
• Looking for candlestick patterns (like engulfing or pin bars) on the confirmation candle.
• Using a trailing stop-loss to protect profits once the trade moves in my favor.

However, I'm curious about what other tools or indicators the community uses to confirm these divergences. Are you guys finding success with:

• Stochastic RSI?
• Awesome Oscillator (AO)?
• Volume Profile to see if the divergence is occurring at a high/low volume node?
• Any custom indicators you've found particularly effective for divergence spotting?

I find that divergences can be noisy, especially on lower timeframes, so confirmation is key. What are your essential confirmation steps before entering a trade based on a divergence signal? Any specific settings you prefer for your indicators when looking for divergences? Let's discuss the nuances of making these signals more reliable.

I've been seeing the same pattern emerge on several altcoins recently, especially on those lower cap gems. The hidden divergences on the 4H are particularly juicy for spotting potential reversals before the crowd catches on.

My go-to confirmation, beyond price action at key levels, is often volume. A spike in volume on the breakout from a divergence-confirmed move really solidifies the trade for me. It's like the market is shouting its conviction!

Have you found any specific altcoin sectors that tend to show these divergences more predictably? Curious to hear your thoughts.

Interesting approach! I'm a big fan of hidden divergences on higher timeframes too. It often catches those moves the regular divergences miss.

Beyond MACD and RSI, have you experimented with the Stochastic Oscillator for divergences? Sometimes it catches divergences that RSI might miss, especially in choppy markets. I find it can be a good complementary indicator.

Also, for confirmation, I often look at the trendlines themselves. If a divergence is forming right at a broken trendline that's now acting as support/resistance, that adds another layer of conviction for me.