The MACD-V Histogram is a natural extension of the work done on the the MACD-V.

The MACD-V Histogram is constructed using the following formula.

MACD-V = [(12-period EMA – 26-period EMA)/ATR (26)] * 100
Signal line = 9-period EMA of MACD-V
Histogram = MACD-V – Signal Line
where
EMA = exponential moving average

1. RISK. The market is considered to be in short-term risk (oversold) when the MACD-V Histogram is < -40
2. RISK. The market is considered to be in short-term risk (overbought) when the MACD-V Histogram is > 40

The MACD-V Histogram is available as a standard indicator in StockCharts ACP. To access it:

1. Select Chart Settings
2. Scroll down the list of Standard Indicators and select MACD-V Histogram
3. You can change the MACD-V Histogram parameters by selecting the settings icon next to the indicator name.