MACDHistogram

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.

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