If you're looking to trade reversals - I think divergences are a pretty well-known way to do so. But, whenever you come across any discourse on the matter of divergence, it always ends in the same refrain - "you should never trade based off divergences alone".... This leads me to the question - what should we pair with divergences to filter the best setups?
The obvious answer that most will come up with is support/resistance, but I'm trying to arrive at something a little more mechanical. S/R is far too subjective to me. I can draw 5 lines that appear valid to me while another trader could draw 5 completely different lines on the same chart that seem valid to him... So are there any indicators (mt4 or TradingView) that you like to use in conjunction with divergence?
The obvious answer that most will come up with is support/resistance, but I'm trying to arrive at something a little more mechanical. S/R is far too subjective to me. I can draw 5 lines that appear valid to me while another trader could draw 5 completely different lines on the same chart that seem valid to him... So are there any indicators (mt4 or TradingView) that you like to use in conjunction with divergence?