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Technical indicators

MACD histogram

Definition

The MACD line minus the signal line, drawn as bars. Bars above zero mean MACD is above its signal line; growing bars mean the gap is widening.

Example

Say MACD reads 1.20 and its signal line 0.80, so the histogram bar is +0.40. Over the next three candles the bars shrink to +0.30, +0.15 and +0.05 while price keeps edging higher: MACD is still above its signal line, but the gap is closing. A bar below zero appears only once MACD actually crosses under the signal line.

Hypothetical numbers, for illustration only.

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An uptrend with a fast EMA (solid line, labeled EMA 9) and a slower EMA (dashed line, labeled EMA 20); price pulls back to the fast EMA, holds it and prints a buy signal.

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