MACD Divergence Indicator: Line Display and Signal Inputs

Summary

This document describes a custom MACD indicator that plots the MACD line in a separate window and marks detected divergences both there and on the price chart. Unlike the standard MACD display described in the document, it uses a simple line rather than a histogram.

The listed controls let users set the fast and slow EMA periods, choose the applied price, and select colors for bullish and bearish signals. The text does not explain how divergences are detected, how signals should be interpreted, or how the indicator performs in trading. It provides no testing results or guidance on parameter selection, so the description is useful mainly as an overview of the indicator’s display and inputs.

Key ideas

• The indicator plots a MACD line in a separate window instead of displaying a histogram.
• Detected divergences are marked in the indicator window and on the price chart.
• Inputs include two EMA periods, an applied price, and separate bullish and bearish colors.
• The description gives no rules for interpreting signals or evaluating their performance.

Tags

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