A MACD Signal-Line Indicator for Bullish and Bearish Divergences

Summary

This brief indicator description explains a custom MACD tool that plots only the MACD signal line in a separate pane and marks detected divergences both there and on the price chart. It distinguishes the indicator from a standard MACD display, which typically includes additional plotted components. Bullish and bearish divergence marks use separately configurable colors.

The indicator exposes settings for the fast and slow exponential moving average periods, the signal-line smoothing period, the applied price, and the colors used for each divergence direction. The description does not specify how divergences are detected, what confirmation rules apply, or how the indicator performs in trading. It is therefore a summary of configurable display behavior rather than evidence that its signals predict price changes.

Key ideas

• The indicator plots a MACD signal line in a separate chart pane.
• It marks detected bullish and bearish divergences on both the indicator and price charts.
• Users can set the fast and slow EMA periods, signal-line period, applied price, and signal colors.
• The description gives no divergence-detection rules or evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.