MACD Divergence — what it is and how to use it in trading
Definition
A MACD divergence is the same idea as an RSI divergence, but the oscillator is the MACD line: in a bullish divergence, price makes a lower low while MACD, on the same bars, makes a higher low.
How it works in the builder
macd_bullish_divergence/macd_bearish_divergence are boolean operands with fast/slow/signal parameters (for the MACD calculation itself) and left/right (confirming the compared swings). It is considered more reliable than an RSI divergence because it factors in the rate of trend change, not just an overbought/oversold level.
What it looks like on the chart
As with RSI, the divergence is marked with two trendlines — across the price extremes and the matching points on the MACD panel.
Typical use
Typical condition: macd_bullish_divergence == 1 combined with a higher-timeframe trend filter — the same logic as an RSI divergence, but usually weighted more heavily when both indicators' signals agree.
Common pitfalls
MACD reacts more slowly than RSI due to EMA smoothing, so its divergences confirm later — the price paid for the presumably higher reliability. Like any divergence, it's not a guarantee of a reversal, only a sign of weakening momentum.
This block is available in the strategy builder
137 no-code blocks — build an entry condition with this term and test it on history
Historical results do not guarantee future ones. The service is an informational and analytical tool, not an individual investment recommendation; trades are not executed.
MACD Bullish Divergence
Block variants
MACD Bearish Divergence