What is the MACD Histogram and how to use it for more accurate trading

BoredApeResistance · 2026-02-25T20:21:52+00:00

The MACD Histogram is a crucial component of the MACD indicator, enabling traders to identify price trend changes quickly and accurately. Created by Gerald Appel in the late 1970s, it displays the difference between the MACD Line and Signal Line, helping users assess trend strength based on short-term and long-term EMA comparisons.

BoredApeResistance

2026-02-25 20:21:52

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The MACD Histogram is a key component of the MACD indicator that helps traders quickly and accurately identify changes in price trends. This technical indicator applies the Moving Average (MA) by comparing the short-term and long-term EMA lines to measure trend strength.

What is the MACD Histogram?

MACD (Moving Average Convergence Divergence) was created by Gerald Appel in the late 1970s. It consists of three main components: the MACD Line, the Signal Line, and the MACD Histogram. The latter displays the difference between the MACD Line and the Signal Line using bar graphs for clearer observation of changes.

All three components operate based on the idea that if an asset’s price is in an uptrend, the short-term EMA (12 days) will be higher than the long-term EMA (26 days). Conversely, if the price is in a downtrend, the short-term EMA will be lower than the long-term EMA.

How to Read the MACD Histogram

MACD Histogram Calculation Formula:

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