Description

• MACD Histogram (MACD-H) consists of vertical bars showing the difference between the MACD line and its signal line.
• MACD-H is used with MACD as a complementary indicator

Interpretation

• If the MACD line is above the signal line, the histogram is positive, and the bars are drawn above the zero line.
• If the MACD line is below the signal line, histogram is negative, and the bars are drawn below the zero line

Default Parameters Used/Inputs

• Price Line
• Fast Avg Type
• Fast Bars
• Slow Avg Type
• Slow Bars
• Avg Type
• Avg Bars

Returns/Output

MACD histogram of the stock

Formula

MACDH = MACD – Average of MACD