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| The MACD Histogram is a technical indicator derived from the Moving Average Convergence Divergence (MACD) indicator. It represents the difference between the MACD line and the signal line and is plotted as a histogram. When the MACD line is above the signal line, the histogram is positive, and when the MACD line is below the signal line, the histogram is negative. Traders use the MACD Histogram to identify potential changes in trends. When the histogram increases, the difference between the MACD and signal lines grows, which can signal a strengthening trend. Conversely, when the histogram is decreasing, it suggests that the difference between the MACD and signal lines is narrowing, indicating a potential trend reversal. Traders also look for divergences between the MACD Histogram and the underlying asset's price, as divergences can indicate a potential change in trend. |
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Moving Average Convergence/Divergence Histogram
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| MACD Histogram(12,26,9) Bullish Divergence |
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| MACD Histogram(12,26,9) Crossed Above Zero |
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| MACD Histogram(12,26,9) Above Zero Line |
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| MACD Histogram(12,26,9) Below Zero Line |
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| MACD Histogram(12,26,9) Crossed Below Zero |
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| MACD Histogram(12,26,9) Bearish Divergence |
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 MACD - Technical Analysis from A to Z
The MACD (Moving Average Convergence/Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average called the "signal" line is plotted on top of the MACD to show buy or sell opportunities. The MACD proves most effective in wide-swinging trading markets. There are three popular ways to use the MACD: crossovers, overbought/oversold conditions, and divergences.
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