Engineering Alpha

Engineering Alpha

MACD's Special Divergence

Learn About the Special Divergence Technique

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
May 20, 2025
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The MACD is an unbounded indicator mainly used for trend detection. However, traders also look at divergences to detect trend exhaustion. This article presents a way to look at divergences using a moving average (or signal line). This technique is referred to as the special divergence.

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