Wick

MACD

Indicators I

Trend + momentum in one

MACD line = 12 EMA − 26 EMA; signal = its 9 EMA. Crosses above signal = bullish momentum shift; the histogram shows the gap growing or shrinking in real time.

Check yourself

The MACD histogram shrinking toward zero means…

  1. Trend accelerating
  2. Momentum fading, a cross may be coming correct
  3. Data error

The histogram IS the distance between the lines. Shrinking = convergence = momentum dying.

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