The Divider Band is composed of two key moving averages that do not change position even when selecting a different timeframe. These moving averages are the 21-week exponential moving average (21WEMA) and the 200-day simple moving average (200DSMA).

By not changing, both moving averages serve as a constant reference for the macro trend and how far the price is from this band. Both are valuable indicators that provide useful insights.

Macro trend: Essentially, when the 21WEMA crosses below the 200DSMA and the price is below this band, the price is in a long-term bearish phase. Conversely, if the 21WEMA crosses above the 200DSMA and the price is above the band, we are in a macro bullish period.

The Divider Band clearly shows macro trends, as depicted in the following image:

The second use of the Divider Band is to determine how far the price is from the band. Generally, when the price has significantly moved away, we can expect it to eventually close the distance. This allows us to identify investment opportunities. To spot big gaps in price, refer to the following image:

<aside> 💡 In the indicator options, you will find various accessories for the Divider Band, such as adding labels whenever there is a trend change.

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