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technical_indicators:macd-histogram [2019/09/07 00:20] betseyp [MACD-Histogram Turns Negative] |
technical_indicators:macd-histogram [2023/07/17 00:06] jayanthi [Introduction] |
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| ====== MACD-Histogram ====== | ====== MACD-Histogram ====== | ||
| - | ===== Introduction ===== | + | ===== What Is the MACD Histogram? ===== |
| Developed by Thomas Aspray in 1986, the MACD-Histogram measures the distance between MACD and its signal line (the 9-day EMA of MACD). Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero line. Aspray developed the MACD-Histogram to anticipate signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD. See our [[:technical_indicators:moving_average_convergence_divergence_macd|ChartSchool article]] for more on MACD. | Developed by Thomas Aspray in 1986, the MACD-Histogram measures the distance between MACD and its signal line (the 9-day EMA of MACD). Like MACD, the MACD-Histogram is also an oscillator that fluctuates above and below the zero line. Aspray developed the MACD-Histogram to anticipate signal line crossovers in MACD. Because MACD uses moving averages and moving averages lag price, signal line crossovers can come late and affect the reward-to-risk ratio of a trade. Bullish or bearish divergences in the MACD-Histogram can alert chartists to an imminent signal line crossover in MACD. See our [[:technical_indicators:moving_average_convergence_divergence_macd|ChartSchool article]] for more on MACD. | ||