MACD Histogram
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)