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MV Volume Indicators

Index Volume

VMA

VMA Displaced

SBV (S-B) Osc.

Selling & Buying Volume

MVO

 

AD Momentum

AD Momentum VMA

AD Mom Volume Osc

AD Mom Volume Ratio

 

AD Indicators

AD Volume

Adv - Decl Volume Osc.

Adv / Decl Volume Ratio

AD Issues

Adv - Decl Issues Osc.

Adv / Decl Issues Ratio

TRIN

McClellan Oscillator


Price Indicators

Moving Average

MA Displaced

MACD

MACD Histogram

RSI

Stochastics

Stochastics RSI

Rate of Change (ROC)

Up/Down Price


Volume Indicators

Volume ROC
Volume Oscillator
PVO
VAO


Other Indicators

Volatility Index

 
Technical Analysis, Studies, Indicators:
MACD Histogram


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MACD Indicators can tend to lag price movements. The MACD-Histogram represents the difference between the MACD and its signals line (EMA). As a rule a change in the MACD Histogram will usually precede any changes in MACD and the MACD histogram signals can show trend changes more in advance in comparison to the MACD signal. On the other hand it makes the MACD histogram a less reliable indicator that may generate more fake signals. Very often the MACD Histogram is shown on the chart together with the MACD indicator.

The MACD histogram makes centerline crossovers and divergences more easily identifiable. Whenever MACD crosses the signal line (EMA), MACD-Histogram crosses the zero line. If the value of MACD is larger than the value of the signal line, then the value on the MACD-Histogram will be positive. Conversely, if the value of MACD is less than its the signal line, then the value on the MACD-Histogram will be negative.

The simplest use of MACD Histogram is using points at which the indicator crosses the zero line. A buy signal could be generated as the MACD histogram runs above the zero line (center line) and a sell signal could be generated as the histogram runs below zero.

  • Close short position and go long when the MACD Histogram runs below zero.
  • Close long position and go short when MACD Histogram runs above zero.

 Chart 1: S&P 500 MACD Histogram Chart
SP 500 MACD Histogram Chart


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7/25/2008 - SV1