MACD Histogram Ind

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The MACD Histogram measures the distance between the MACD line and the MACD signal line. Two important terms are derived from the MACD histogram are:

·         Convergence: The MACD histogram is shrinking in height. This occurs because there is a change in direction or a slowdown in the trend. When that occurs, the MACD line is getting closer to the MACD signal line.

·         Divergence: The MACD histogram is increasing in height (either in the positive or negative direction). This occurs because the MACD is accelerating faster in the direction of the prevailing market trend.

When the market is moving strongly in a direction, the MACD histogram will increase in height. When the MACD histogram does not increase in height or begins to shrink, the market is slowing down and might be warning of a possible reversal.

With the MACD histogram it is easy to find the divergence.

Indicator Setting

MA Setting

• Fast EMA Period: Number of periods for fast exponential moving average
• Slow EMA Period: Number of periods for slow exponential moving average
• Signal SMA Period: Number of periods for signal simple moving average
• Applied Period: Method
• Close price
• Open price
• High price
• Low price
• Median price
• Typical price
• Weighted price
• Period: Number of periods
• Show Histogram: If enable, it will show the histogram
• Show MACD Lines: If enable, it will show the MACD lines