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  5. 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

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