Using MACD and Volume to Inspect Price-Volume Divergence

Summary

The document describes an indicator that combines the Moving Average Convergence Divergence (MACD) with trading volume to help identify divergence or convergence between price behavior and volume. It includes the standard MACD lines and histogram, with an option to hide the volume display.

The description does not specify the signal rules, parameters, markets, or timeframe, and it provides no backtest or performance evidence. It is best understood as a charting aid for visual inspection rather than a complete trading strategy. Any interpretation of apparent price-volume mismatches would need separate validation and risk controls.

Key ideas

• The indicator displays MACD lines and a histogram alongside volume information.
• Its stated purpose is to highlight divergence or convergence involving price and volume.
• The volume display can be switched off while retaining the MACD components.
• No signal definitions, parameter guidance, or empirical performance results are provided.

Tags

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