Divergence is a difficult area to discuss as for my experiences, some you use and many you don't, to just give a rather random reply would do more harm than good IMHO.
Everyone loves to talk shit without saying anything much at all these days. They are worthless, they are side effects of indicators from mimicking price but not being price itself. Some claim, falsely I will add, that they indicate loss of momentum, but it's bullshit. Learn to code and verify shit on your own, not through strangers; there is more false information out there than facts, particularly in trading.
As you can tell from enclosed chart, divergences can happen anywhere, and often times if you day trade or long term, you will miss huge profits. It is far better to use chart patterns often on in books to show ends of trends, so that means much study on your part and testing them to see it has an edge. I will use some divergences as when not to take signals, but you assign so many then can continue to take trades, whereas in stocks, just easier to find others for longer term. Another point is divergence will form right after trend changes and I always disregard them as happening. I used divergences great deal more ten years ago and earlier, but they are working much less not for exits now, whereas charting never stops working and work at it hard enough, you develop you own patterns. I prefer to use divergences more and more for confirmation with trend trades for futures. Larger timeframes like weekly for stocks then divergences work better for me, but just cause they work better for one, you have much testing to see if work for you.
This is false. Divergence is one of the greatest tools a trader can have at their disposal. The problem is most people do no understand which ones to take. There is only one way to learn to use them correctly and that is real-time real-money loss/work.
Someone telling you that divergence doesn't work, is someone who has not done their due diligence in this area of trading .
I see sir. I have been using divergence for entries, and yes, I have an edge using them to pick where price will turn, however I do not know a logical Take profit target, for example, divergence signals losing momentum, it doesnt mean it will reverse but means price is weakening. I am unable to answer my question of, how far will price go after diverging? I am currently backtesting & finding a logical answer to this. It seems that it's a complete reversal where I can take profit from the whole wave formed after diverging.
You can do a target and a runner, check out last 1,000 or back test profitable trades to see what is makeable on 90% of them, it might be 1-2 points, then go to break even on runner trying to go for more. For me "Div" are way of not taking trades and confirmations but I don't wait for them to happen as I have other signals, they just not as reliable for me as they use to be. I have found chart patterns that occur much more to show me ends, an edge.