MACD Histogram
MACD Histo.
What it is
The MACD histogram shows the gap between the MACD line and its signal. Taller bars = stronger momentum in the indicated direction. A widening histogram confirms a trend; a narrowing one often foreshadows exhaustion.
How to read it
Watch especially for histogram reversals: when it crosses from positive to negative (or vice versa), a MACD crossover is imminent. Divergences between histogram and price (price up, histogram down) often signal a reversal.
Common reference points
- Bullish momentum acceleratingGrowing and > 0
- Bullish momentum weakeningFalling and > 0
- Bearish momentum weakeningGrowing and < 0
- Bearish momentum acceleratingFalling and < 0
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Like MACD itself, lagging. Very sensitive to false signals in trendless markets. Cross-check with RSI and volume before acting.
Other measures — Technical
Educational content. Polaris is not a registered investment adviser and makes no recommendation.