What it means
The MACD histogram is calculated by subtracting the signal line from the MACD line. It is displayed as bars above and below a central zero level.
When the lines move further apart, the histogram bars generally expand. When the lines move closer together, the bars contract. The histogram crosses zero when the MACD line crosses the signal line.
Why it matters in live markets
The histogram provides a visual way to observe whether the momentum difference measured by MACD is increasing or decreasing.
Expansion and contraction do not predict what price will do next. Bars can contract while price continues in the same direction, and they can expand during a move that later reverses.
Key points
- The histogram represents the difference between the MACD and signal lines.
- Expanding bars mean the distance between the lines is increasing.
- Contracting bars mean the lines are moving closer together.
- A zero crossing represents a MACD and signal-line crossover.
- The histogram measures indicator relationships, not future price certainty.
Example
If the MACD line rises further above the signal line, positive histogram bars generally become larger. If the two lines then converge, those bars begin to contract.
Related glossary terms
MACD, MACD signal line, MACD crossover, Momentum, Divergence, Volatility
Where you will see it
You will see the MACD histogram inside the indicator panel, usually as vertical bars positioned around a horizontal zero line.