> For the complete documentation index, see [llms.txt](https://docs.bigbeluga.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bigbeluga.org/ultimate-suites/ultimate-macd-suite/macd-divergence.md).

# 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.

<figure><img src="/assets/9b9422e86ecead97e24f7d6629c71475fc7f8d8a3b69d39bbc1d3ca0e5a9aff8.png" alt=""><figcaption></figcaption></figure>

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

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* **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

### Hidden Divergence (Trend Continuation)

While regular divergence signals a potential trend reversal, Hidden Divergence is a powerful tool used to identify trend continuation.

&#x20;It suggests that the current trend is gathering strength during a pullback and is likely to resume its original direction.

**How it Works**

* Hidden Bullish Divergence: Occurs during an uptrend. Price forms a higher low, but the MACD oscillator forms a lower low.&#x20;

<figure><img src="/assets/dd1eb2008aa37aa38cddd921c10ca99b29eda24573c3c9fb05400be05fa7f2a9.png" alt=""><figcaption></figcaption></figure>

This indicates that despite a deeper drop in momentum, the price floor is holding higher than before, signalling a high-probability continuation of the move up.

* Hidden Bearish Divergence: Occurs during a downtrend. Price forms a lower high, but the MACD oscillator forms a higher high.&#x20;

<figure><img src="/assets/ceb691726235d72b933639812b34d5d21a32d4c343c9fc4ab95cb47c32e1d75b.png" alt=""><figcaption></figcaption></figure>

This indicates that even though momentum spiked higher, the price failed to break the previous peak, signaling a continuation of the move down.

### Settings

Located in the **MACD Divergence** section of the settings panel:

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| Setting           | Description                                                                                                                                                          |
| ----------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Divergence        | Toggle: Enable or disable divergence detection.                                                                                                                      |
| Divergence Length | <p>Length: Defines how far back the system looks for swing points.</p><p>Shorter: Faster, more frequent signals.</p><p>Longer: Slower, more macro-level signals.</p> |
| Regular Bullish   | Sets the color for standard bullish lines and labels (potential reversals).                                                                                          |
| Regular Bearish   | Sets the color for standard bearish lines and labels (potential reversals).                                                                                          |
| Hidden            | Enable or disable detection for Hidden Divergence (trend continuation).                                                                                              |
| Hidden Bullish    | Sets the color for hidden bullish lines and labels.                                                                                                                  |
| Hidden Bearish    | Sets the color for hidden bearish lines and labels.                                                                                                                  |