I suspect that those who say that these divergences "don't work" don't understand how the MACD is constructed (whether or not this applies to Ditch, I have no idea). For example, the histogram measures the distance between the two lines. If the price is trending, those two lines will come closer together, not farther apart. Therefore, the histogram will show a "divergence" where there is none. So one has to relate what price is doing to what the MACD is showing. Otherwise, the MACD will present a false picture. Of course, one could just focus on price, but a lot of people apparently don't understand what they're looking at, so they rely on indicators to translate for them. Unfortunately, most indicators never made it past the third grade.
A clear Sell/Short signal for CLZ04 was confirmed by June2 session. Since the markets were confused about OPEC decisions etc, there were opportunities to Short even the next bar, when the prices gave the [tricky and wrong] bullish impression .
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% Like plans including recording in writing; price, moving averages , occasional CD[certificate /deposit] mr Price in BIG TRENDS; but still watch out for errors in moving averages or errors in price data. Like open price & db-phoenix quote ''prev days days high, low, close'' The plans of the diligent tend only to advantage. Solomon, trader king.