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Moving Average Convergence/Divergence (MACD) Histogram

MACD indicator signals have a possibility to be delayed after the price movements. The MACD Histogram tries to find a solution for this situation by indicating the MACD and its reference line, which is the 9-day Exponential Moving Average, divergence through drawing the reference line near zero. According to this, MACD Histogram is able to show price trend changing beforehand unlike the general MACD signal.

MACD Histogram

A histogram forms a signal to buy when it gets higher than zero point and a signal to sell when it gets lower than zero.

The MACD (Moving Average Convergence/Divergence), developed by Gerald Appel who was a Systems and Forecasts publisher, is a momentum indicator than follows the trend. It indicates a two-price moving averages interconnection. The MACD indicates the variety between a 26-day and 12-day exponential moving averages. A "signal" or "trigger" line corresponding a 9-day exponential moving average is placed on the MACD summit indication possibilities to sell or buy. According to Appel, moving averages are specified as percentages. According to this, he marks out 7.5%, 15%, and 20%.

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