Terms

  1. Home
  2. Terms
  3. Technical Indicator
  4. MACD - Moving Average Convergence/Divergence
  5. MACD Histogram
MACD Histogram

MACD Histogram

Parent term
MACD - Moving Average Convergence/Divergence

Generated by taking the difference between the MACD line and the MACD signal line.

MACD Histogram Mechanics

How To Use
  • It can help you identify countertrend moves
  • When the general trend is up (MACD Line and macd Signal Line are positive)
    • Could be a sell signal when the histogram goes from positive to negative or below is moving average
  • When the general trend is down (MACD Line and macd Signal Line are negative
    • Could be a buy signal when the histogram goes from negative to positive or above its moving average

Other Tips
  • Can be helpful to add a moving average to the histogram (5 period is typical)

Warnings and Disclaimers

The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.

Copyright Finnotes.org © 2018 - 2020