The display of MACD lines can be converted into the form of the MACD Histogram. Histogram consists of bars facing down or up the line level 0 (zero). The second function of this indicator exactly the same, just different way of reading.
If the MACD line cut to the top of the line signal on the MACD indicator, the MACD histogram will be formed on the first bar that leads to the top of Level 0 (buy signal). When the MACD line cut down on the MACD signal line, the MACD histogram will be formed on the first bar megnarah downward from level 0 (sell signal).
Through this histogram can also be drawn divergence, to give signal bearish or bullish. For the example see the picture.
MACD Histogram formula:
Histogram = MACD line value - the value of signal line
If the MACD line cut to the top of the line signal on the MACD indicator, the MACD histogram will be formed on the first bar that leads to the top of Level 0 (buy signal). When the MACD line cut down on the MACD signal line, the MACD histogram will be formed on the first bar megnarah downward from level 0 (sell signal).
Through this histogram can also be drawn divergence, to give signal bearish or bullish. For the example see the picture.
MACD Histogram formula:
Histogram = MACD line value - the value of signal line
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