I understand what you are saying, but traders use divergence all day long to help pick entry points for trades and trend reversals. Maybe signal was the wrong term to use, but divergence is certainly used to enter trades (as far as I've been told and taught, but I've been wrong many times before).


BTW I don't want to get into a long debate about divergence in this thread.

Can anyone help me isolate the false divergence from the ones that reverse?

Here is another example of what I'm talking about. After the first divergence, price continued up, after the second one, price dropped out the bottom.