Bullish and bearish divergances are the equivalent of the Amber traffic light. Get ready to act. You still need to determine what price has to do before a trade is either entered or closed-out. In some trading strategies it is the combination of two specific divergances that trigger an entry if (and only if) price has reached a pre-determined level. Quite good really!
I am currently looking at incorporating divergance studies into the ACOFE Research Project. But as with all indicator studies, they will be unceremoneously dumped if they complicate matters.
cheers
