To the contrary Atomized ( with all due respect ) regular div never fails. Price always returns to the point of divergence. Its a matter of how much heat you can withst while waiting. That's the difference. At least that's been my experience. If someone can show me an example that doesn't work then I will admit defeat.
As for the USD/CHF 4HR look at the point of divergence pricewise price WILL return there.
-S
All due respect taken
I remember using reg div a few times being stopped out in hindsight if i had to have hung on i probably would've broke even worse case. In the past i tried to use reg div for scalping on 1 min charts which led me to make the above statement will watch learn !
Divergence is actually a leading indicator. However on its own it'll kill you if you don't position size correctly. I'm finding it to be a very useful confirmation tool in conjunction with Fibs Pitchforks.
Nat
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Atomized You're probably right. What I like to do is use shorter time frame charts as the waiting period is significantly reduced trade pretty small adding to the position as it skids further away my original entry point. This way when price comes back to where I would have broken even on the first entry I've profited on the added lots. But as Bob says you have to be very judicious. The skidding can kill you especially in volatile ps like GBP/JPY.
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) regular div never fails. Price always returns to the point of divergence. Its a matter of how much heat you can withst while waiting. That's the difference. At least that's been my experience. If someone can show me an example that doesn't work then I will admit defeat. 
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