Description
The MACD (Moving Average Convergence/Divergence) Histogram is a study that visualizes the difference between the main MACD plot and its signal line. Plotted as a histogram, this indicator often produces valuable signals for trend analysis: specifically, when it crosses above or below the zero level.
When the histogram rises above the zero level, an uptrend may be emerging; conversely, when it falls below, a downtrend is likely to be identified. Actual indication of the crossovers can be enabled by setting the show breakout signals parameter value to yes.
Input Parameters
| Parameter | Description |
|---|---|
fast length
|
The number of bars used to calculate the fast moving average. |
slow length
|
The number of bars used to calculate the slow moving average. |
macd length
|
The number of bars used to calculate the moving average of MACD. |
average type
|
The type of moving average to be used in calculations: simple, exponential, weighted, Wilder's, or Hull. |
show breakout signals
|
Controls indication of histogram crossovers above and below the zero line. |
Plots
| Plot | Description |
|---|---|
Diff
|
The MACD Histogram indicator. |
UpSignal
|
If enabled, displays an up arrow every time the histogram crosses above the zero line. |
DownSignal
|
If enabled, displays a down arrow every time the histogram crosses below the zero line. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.
Past performance is no guarantee of future performance.