MACD Divergence

What is MACD Divergence?

The MACD Divergence module detects bullish and bearish divergences between price and the MACD oscillator. These divergences often appear before major price reversals and help traders catch early signals of trend exhaustion.

This is a non-lagging system. Divergences are detected in real time and plotted immediately after confirmation, with 1 bar delay.

• Bullish Divergence: Price forms a lower low while MACD forms a higher low.

• Bearish Divergence: Price forms a higher high while MACD forms a lower high.

Visuals include:

• Divergence lines on the MACD pane

• Optional labels on the price chart

Customization

Located in the MACD Divergence section of the settings panel:

• Divergence: Enable or disable divergence detection

• Divergence Length: Defines how far back the system looks for swing points

  • Shorter = faster, more frequent signals

  • Longer = slower, more macro-level signals

• Bullish Color: Sets the color for bullish lines and labels

• Bearish Color: Sets the color for bearish lines and labels