What is MACD Divergence?
MACD divergence occurs when the price of an asset moves in the opposite direction of the Moving Average Convergence Divergence (MACD) indicator. This technical analysis pattern is one of the most reliable signals for identifying potential trend reversals in stocks, forex, and cryptocurrencies. When price makes higher highs but MACD makes lower highs, it signals a bearish divergence. Conversely, when price makes lower lows but MACD makes higher lows, it indicates a bullish divergence.
Our free MACD divergence scanner automatically detects these patterns across thousands of stocks, saving you hours of manual chart analysis. The scanner identifies both regular divergences (trend reversal signals) and hidden divergences (trend continuation signals).
Types of MACD Divergence
Bullish Divergence
Price makes lower lows while MACD makes higher lows. This signals potential upward reversal as selling momentum weakens despite falling prices.
Bearish Divergence
Price makes higher highs while MACD makes lower highs. This signals potential downward reversal as buying momentum weakens despite rising prices.
Hidden Bullish Divergence
Price makes higher lows while MACD makes lower lows. This signals trend continuation in an uptrend, suggesting the pullback is ending.
Hidden Bearish Divergence
Price makes lower highs while MACD makes higher highs. This signals trend continuation in a downtrend, suggesting the bounce is ending.
How to Use This MACD Divergence Scanner
- 1
Select Your Filters
Choose a specific sector, exchange, or price range to narrow down your scan. You can also enter a specific symbol to analyze.
- 2
Run the Scan
Click "Scan for Divergences" to analyze stocks using our MACD divergence detection algorithm.
- 3
Review Divergence Signals
Examine the detected divergences, noting the type (bullish/bearish) and strength (strong/moderate/weak).
- 4
Confirm with Additional Analysis
Use divergence signals as part of your broader analysis. Combine with support/resistance levels, volume, and other indicators.
How MACD is Calculated
The MACD indicator consists of three components calculated from exponential moving averages (EMAs):
MACD Line = 12-period EMA - 26-period EMA
Signal Line = 9-period EMA of MACD Line
Histogram = MACD Line - Signal Line
Our scanner analyzes the relationship between price action and the MACD histogram to identify divergences. When price and MACD move in opposite directions over multiple swing points, a divergence is detected.
MACD Divergence Trading Tips
Wait for Confirmation
Don't trade on divergence alone. Wait for price action confirmation like a candlestick pattern or break of a trendline.
Consider the Trend
Divergences are more reliable when they occur at key support or resistance levels within the context of the larger trend.
Use Multiple Timeframes
Divergences on higher timeframes (daily, weekly) are generally more significant than those on lower timeframes.
Manage Risk
Always use stop-losses. Divergences can fail, especially in strong trending markets. Never risk more than you can afford to lose.