| MACD Histogram | |
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This is not the same as the Histogram generated by the MACD
Oscillator when the third parameter is set to zero. The MACD
Histogram requires all three parameters, set the same way as the
MACD study above. It only draws one line, which is presented as a
histogram and is the difference between the MACD and it's moving
average. It is plotted around the zero point.
When the Histogram is above the zero line, conventional wisdom
interprets this as a bullish signal, and conversely, when the
histogram is below the zero line this is interpreted as a bearish
market.