Personally i am not too keen on using indicators for scalp trading (5- 15 min) but for spotting divergence trades they are very useful. After a lot of experimenting, i have come to feel that RSI (14 period) gives the best signals.I am curious what other traders use for trading divergences. thanks
DIVERGENCE: IT SIGNALS WHEN THERE IS A DIFFERENCE BETWEEN PRICE AND THE INDICATOR MEASURING THE PRICE ACTION. EXAMPLE PRICE MAKES A HIGHER HIGH BUT THE RSI DOES NOT. IT INFERS THAT MOMENTUM IS SLOWING AND A CHANGE IN TREND IS ANTICIPATED . ALERTS THE TRADER TO LOOK FOR A SELL SIGNAL.